Coursera Inc. Vs ACIT (ITAT Delhi)
Payments for Access to Online Learning Platform Not Taxable as Fees for Technical Services (FTS) under India-USA DTAA
Case Overview: The Income Tax Appellate Tribunal (ITAT) Delhi Bench recently ruled in favor of Coursera Inc., a US-based company, concerning the taxability of income received from Indian customers. The case revolved around the classification of the income as “Fee for Technical Services” (FTS) or “Fee for Included Services” (FIS) under the Income-tax Act, 1961, and the India-US Double Taxation Avoidance Agreement (DTAA). The appeal, which concerned the assessment years 2020-21 and 2021-22, challenged the final assessment orders passed by the Assessing Officer (AO) under Section 143(3) read with Section 144C of the Income-tax Act.
Facts of the Case: Coursera Inc., a non-resident corporate entity incorporated in the United States, operates a global online learning platform offering access to courses and degrees from leading universities and companies. Through its platform, assessee offers online education/courses in various disciplines, including but not limited to management, arts, humanities, data analysis and philosophy etc. The company entered into agreements with various Indian customers, including universities, to provide access to its platform. The income from these services amounted to ₹75.66 crores, while the company offered ₹17.98 crores as taxable income.
