Tds from payment to foreign company

A company purchased machinery on Installment Basis. For this, Co. is paying Processing Fees to foreign company. While paying processing Fees, TDS is to be deducted? if yes what is rate as per DTAA and u/s 195 (Country is Italy)

Also, on processing Fees and Interest on installment paid by company is liable to pay service tax under reverse charge mechanism. (Processing Fees service is rendered outside India)