Query regarding service tax in j&k

As per Rule 4 (b) of Place of Provision of Service Rules 2012, when the services provided to an individual, (represented either as the recipient of service or a person acting on behalf of the recipient), which require the physical presence of the receiver or the person acting on behalf of the receiver, with the provider for the provision of the service, the place of provision would be the location where the services are actually performed.

In the instant case, it appears like the place of provision would be J & K which is outside taxable territory. Hence Service tax levy fails.