Hi Jayesh,
For IPN whether it is the the sandbox or live, you have to provide an URL
that is accessible from outside your local network.

IPN is a third party system, so if you tell IPN to send its requests to
localhost, it will send requests to IPN's localhost.

You need to open up a port on your network: 80, 443, 8080 or 8443, look up
your public IP address and provide it to IPN simulator.

Since I'm working from home, on my router, I opened up port 80 directed all
traffic to my development machine.
You can tell your router to redirect all traffic from port 80, to send it to
your machine on port 8080. 

Don't forget to open up the above ports on your development machine as well.

If you are at an office then you can ask your sys admin to open up the above
ports and redirect them to your machine, but you still have to open up the
ports on your development machine.

I hope this helps and not make things more confusing for you.
Any questions, just ask.

Regards,
Lucas

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