Though it was easy to capture the traffic of web service running on local pc in Firefox, it was little tricky in case of IE. I have heard that .Net and IE don't send traffic to localhost through a proxy, so here the proxies such as Burp, Paros fails. So only way is to use Firefox or other browsers which support it or in case of IE, this is workaround: Go to Windows-> System32-> Drivers-> Hosts and make the following entry: 127.0.0.1 myDomain.com Now access the site as http://myDomain.com Now the Burp/ Paros would be able to capture the traffic!