Is service tax payable as per percentage of service location

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Natasha Mourya (Querist)
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20 January 2015 I read an article which makes me confuse regarding rule 6 of service tax act, which describes that if a service is rendered in more than 3 places, service tax is applicable on the place where percentage of service is higher than service place.Example: A japanese company provides its service of testing bikes (30% in Mumbai, 20% in coaimbatore, 50% in Jammu), In that article I found that service is taxable in coaimbaore which is having only 20% of service area. According to me service tax is not applicable becoz higher percentage of service is 50% rendered in Jammu)
Plz help me out either above article is correct or not????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 January 2015 Place of provision of services provided at more than one location.-Where any service referred to in rules 4, 5, or 6 is provided at more than one location, including a location in the taxable territory, its place of provision shall be the location in the taxable territory where the greatest proportion of the service is provided.

The place of provision shall be Mumbai being the taxable territory where 30% service is provided.

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