The English translation makes little sense to me. Worst of all, I can't report it as unnatural.
I agree with the previous replies, you would never say "this place is here" in English (or other Germanic languages). It's grammatically correct, but it's completely redundant and bizarre. If this is something, it's an excellent example of the "to be" confusion phenomenon.
So, whatever the actual meaning of the expression is (I don't know that yet!), the primary translation needs to be changed.
To clarify: the context of this sentence is at a theatre or on a plane, looking for a particular seat number? That's the only situation I can imagine saying "Yes, this seat is here" in English.
Also: How would you say "Yes, this is the place" (as in, this is the address we are looking for) ? That's what I thought it was saying.
Still, in a theater or plane you might say, "Here are our seats" or "This is my seat" or "Our seats are here." It's unnatural-sounding to say, "Yes, this seat is here." The seat is described possessively in a location context.
"This seat. . . " is used to discuss the condition of the seat or how one feels in it.
If a taxi, the driver said, "Here?" You could say, "Yes, this is the place." But you are right we don't know in what context this is being used.
We might say, "Here, take this seat," to discuss sitting next to each other, but that's not what they are discussing here.
"Yes, this seat is here," sounds very unnatural in English. The only place I can imagine it being used would be while looking for an assigned seat, as on an airplane or in a concert hall. Even then, a native speaker would be much more likely to say: "Yes, this is the (correct) seat," or "Yes, this is Seat Number 12-B."
"also I'm confused on why "yes, that place is here" is wrong?"
I think you said English is your native language, mine too; but I'm sorry that's just really awkward phrasing. "That" implies some distance or other removal in English. So saying "That place is here" is, to me at least, the equivalent of saying "That book in your bag is here in my bag". It makes no sense.
Just because это can mean this or that doesn't mean those uses are interchangeable in every context.