Service provided in india to a japanese company

Dear fellows,

This is in regards to the query of service tax invoice. The details are as under:

a) Invoice raised in the name of Japanese company b) Invoice raised in USD c) Invoice raised for special services provided in India (Work done locally) d) 14% service tax applied 

Now according to them they are not liable to pay service tax as there is some agreement between india and japan which i am unable to find. I am attaching herewith the document received from their end to fill up and send. 

Now the question is whether they are not suppose to pay 14% service tax? Or they will submit this document to their government and we have to do necessary paper work to reclaim that 14% ? Or is it legitimate to charge 14% and there would be no query from Government of India? or we should not charge service tax at all?

Please help its urgent. 

Regards,

Rimica