Above posts answers questions related to URL Encoding and How it works, but the original questions was "Should I URL-encode POST data?" which isn't answered.
From my recent experience with URL Encoding, I would like to extend the question further. "Should I URL-encode POST data, same as GET HTTP method. Generally, HTML Forms over the Browser if are filled, submitted and/or GET some information, Browsers will do URL Encoding but If an application exposes a web-service and expects Consumers to do URL-Encoding on data, is it Architecturally and Technically correct to do URL Encode with POST HTTP method ?"