Webclient called from Windows service, throws exception

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I have a windows service (.NET), that is trying to connect to a remote client. But it is throwing an exception. While I tested the same code, as an windows application, there was no such issue.

The error:

Unable to connect to the remote serverSystem.Net.Sockets.SocketException (0x80004005): A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond

My code:

var wb = new WebClient()
var response = wb.UploadValues(ConfigurationManager.AppSettings["Query"], "POST", data);

Most importantly, the same code works in development environment while running it as a part of Windows forms application.

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santubangalore On BEST ANSWER

It got solved it changing the profile in control panel-> admin tools -> service -> select service name ->stop-> right click properties -> log on -> change from Local system to this account -> provided my credentials -> click on apply -> OK.

Restart the service. BTW I had admin privileges.