want to know about service tax & TDS

This question may be a bit long.........

Actually i have a proprietory business of providing services of CART over the internet. All my customers are Europeans or American i.e. none the customers is Indian. My business is Regd. in India and pay tax in india...........

Now i'm making my bsn stream lined....for this purpose I'll be engaging a foreign company regd. in USA........which will helping me in my business like arranging employees and carrying other services over the internet as my work has increased.........and i'll be paying the company through paypall from the internet

Now my question is (1)..should i deduct tax at source while making payment to the company.........i have gone through Sec195 and Sec 90 of the income tax act but is there anything else that anyone can point out..........

Secondly, Is there any point of service tax liability arising on my part (assuming that it is import of services) or in any other way as the case may be...........

PLEASE LEND MY WISE ANSWER ASAP...................