Tds applicability on royalty

Dear All,

Can anybody clarify me on the following:

We (an Indian company) have entered into an agreement with a US Based company for payment of Royalty to them on a product manufactured and sold using the technology supplied by them.  The Royalty amount will be paid to them directly through wire transfer .

The US based company was incorporated in USA.  They have PE in India.

Please let us know under what section TDS has to be deducted i.e. under 194J or under 195 ? 

Thanks,

Krishna