502 Bad Gateway error on client when i host my WCF service to the IIS 7.

When i call wcf service locally, it works fine.
when i call my wcf service hositing it on IIS i get error 502. It happens exactly after 90 secs. So i thing it is some timeout issue...

I tried to change following setting on IIS on mywebsite and default website settings.
In website - connectiontimeout - set to 600 instead of 120
in application pool Ping maximum respond time - 600 instead of 90, ShoutDownTimeLimit = 600 instead of 90 and start uptime limit, instead of 90

I consume WCF through win 8 app client, setting are following:
            client.Endpoint.Binding.ReceiveTimeout = new TimeSpan(0, 3, 0);
            client.Endpoint.Binding.CloseTimeout = new TimeSpan(0, 3, 0);
            client.Endpoint.Binding.OpenTimeout = new TimeSpan(0, 3, 0);
            client.Endpoint.Binding.SendTimeout = new TimeSpan(1, 0, 0);
As i said, it works locally

WCF works through http

What else it can be?
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You can go into browser and check the lan settings for gateway to use in example below

public class GetProxy
        public static WebProxy GetGovProxy()
            WebProxy intranetPassThrough = new WebProxy();
            intranetPassThrough.BypassProxyOnLocal = true;

#if (!DEBUG)
            intranetPassThrough.UseDefaultCredentials = false;
            ICredentials credentials = new NetworkCredential(ConfigurationManager.
            intranetPassThrough.Credentials = credentials;
#if (DEBUG)
            intranetPassThrough.UseDefaultCredentials = true;
            intranetPassThrough.Address = new Uri("http://proxy.mycompany.gov:8989");
            return intranetPassThrough;

'client' below could also be a wcf client or an aspx client

WebProxy intranetPassThrough = GetProxy.GetGovProxy();

            WebClient client = new WebClient();
            // in case of time out use the next line instead of previous
            //WebClientEx client = new WebClientEx();
#if (!DEBUG)
            if (Boolean.Parse(ConfigurationManager.AppSettings["UseProxy"]))
                client.Proxy = intranetPassThrough;
#if (DEBUG)
            client.Proxy = intranetPassThrough;

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