Relief for Coursera: ITAT Rules Receipts Not Taxable as Royalty or FTS Under India-USA DTAA

The ITAT has ruled that receipts by Coursera are not taxable as Royalty or Fees for Technical Services (FTS) under the India-USA Double Taxation Avoidance Agreement (DTAA). The tribunal clarified that the payments received by Coursera for its online educational content do not fall under the definitions of royalty (for use of intellectual property) or FTS (for technical services) as per the DTAA. This decision provides significant relief to online education platforms and digital service providers, clarifying the taxability of their revenue streams under international tax treaties. It promotes clarity in the taxation of digital economy services.