Dear Yatin Bhopi Ji,
You need to churn out lot more facts to opine on this query correctly.
your liability to pay tax to the central government would depend on the fact whether the transaction amounts to import of services or not. No doubt provision of taxable service by any person located in non- taxable territory to a person in taxable territory is covered under Notification No. 30/2012 and subject matter of reverse charge mechanism casting 100% liability on service recipient.
As you have not provided whether the service provider is a company or an individual i would assume that it is a company. As you have stated that they are willing to raise bill in Indian currency, i would further assume that service provider is a foreign company incorporated in a foreign country. i further assume that such service provider is not registered with service tax department and not having any business establishment or fixed establishment in taxable territory. as the discussion would go further, you would see why all this crucial information is required.
It may be noted that any provision of service between two person whether both located in taxable territory or service provider located in non -taxable territory and service receiver located in taxable territory (import off service) would be taxable if place of provision of service is within taxable territory.
In case of service received by you (i.e. coaching service) place of provisions of such service is to be determined as per Rule 4(b) of the POP Rules. service of coaching (nothing but a session of knowledge imparting with instruction of putting that knowledge in practice) requires physical presence of the service receiver or the individual acting on behalf of service receiver. As per Rule 4(b) place where the service are actually performed shall be the place of provisions of service. In the instant case the place of provision of service is with in India except Jammu and Kashmir (again assuming services are not being provided in Jammu and Kashmir) there shall be levy of service tax on such provision of services.
Now the Question remains is whether service provider or service recipient is liable to pay service tax to the central government. in this transaction location of service receiver is not in dispute. Phrase "location of service provider" has been defined under Rule 2(h) of POP.(a) of 2(h) provides that where service provider has taken service tax registration single or centralised, the premises for which such registration has been obtained shall be the location of service provider.
Now in your case if the service provider is a foreign company there are chances that it may have its own branch in India and such branch may have its registration with service tax department. if this is the case location of service provider shall be within taxable territory and the transaction in this situation shall never be import of services. that means you would not be liable to pay tax under reverse charge mechanism. if the service provider is not having registration with service tax department but have business establishment or fixed establishment from where they are providing services, such business establishment or fixed establishment shall location of service provider. if such business establishment or fixed establishment are located on taxable territory, again this transaction would not amount to import of services, meaning you have no liability to pay service tax under reverse charge.
Term business establishment or fixed establishment is not defied under service tax law and are of wide amplitude. i am not taking the definitions provided in education guide as it has no statutory force but even there it can be seen that terms are of wide scope and would highly depend on facts and circumstances of the particular case.
In your case reverse charge would be applicable if service provider company has no service tax registration in India except Jammu and Kashmir, and no business or fixed establishment in taxable territory and the company is incorporated and registered in a foreign country.
The sole point of above discussion is that you need to look at above aspect before assuming liability under reverse charge and amending your registration certificate. the fact that they are more willing to raise bill in Indian currency gives my doubt more weight that they may have an establishment which may qualify as a business establishment or fixed establishment in India.
if ultimately if comes out that service provider is located in non-taxable territory, you need to pay service tax under reverse charge mechanism and amend your registration certificate also. There is no compulsion that a foreign service provider must raise bill in foreign currency only.
Raising invoices in local currency by foreign company is some times a stratgic step if the service provider is willing to invest money in that country only and thus willing to expand its business. it insures unhindered cash flow. Here again to invest and generating more business such company must have a face in that country and such face may or may not qualify as business establishment or fixed establishment.
Regards
Akash Deep
AI Drafter 
TaxTMI 
TaxTMI 
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