Service tax applicability on translation service

Querist represents a translation agency in India. Querist have questions regarding service tax and TDS.

Here is the situation –

1.       Querist have a client outside India who sends me a translation work to be translated from Language A to Language B

2.       Querist hire a freelancer from outside India to perform this task

3.       The client pays in USD to my Indian Bank Account

4.       The Querist pays freelancer in USD from its Indian Bank Account

Questions -

a.       Are my services liable under service tax rules in India or are exempt.

b.       How much TDS should be deducted under following two cases –

i.            Should TDS be deducted on the payment that is being routed outside India to freelance translators residing outside India?

ii.           In my case, 90% payments are being made to independent individuals and only 10% of payments to companies.