Yes, that's exactly what most people say. In the US there are several different time zones (and some of them change times during certain parts of the year), so it's quite common for people to have to ask each other "What time is it there?" (The answer is in the same format: "It's two o' clock here.")

Thank you, Kyra.

When I talk to friends who're in different time zones, I usually say "What time is it for you?" However "What time is it there?" is also correct. You could also say "What time is it in *insert country*?".