Tds for testing services in germany by a foreign company

Will TDS applicable in the following situation.

Indian OEM does a testing ( hardware testing) by exporting the parts to German Company located in Germany and doesnt have a PE in India. Payment will be in Euros and tests will be done in Germany and only the test report will be provided to the Indian OEM.

Should TDS has to be deducted by Indian OEM( Service is outside Índia)?

In the quote from German company its stated that All quotes are NET exclusive of tax.  So while making bill  shud the Foreign company  list the net amount and service taxes so that the Indian OEM has to pay the Service tax.

Is this type of income taxable in India as the service provided is outside India.

Thanks for your support and advices!