TDS Deduction Online Learing Platform

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Vignesh Raja (Querist)
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28 November 2024 Hi All

Is the TDS to be deducted on Online Learning Platforms Like Coursera Subscription by Company to His Employees ?

And the Coursera is Actually Outside of India which he provide service in India for the Subscription and he has the SNRR Account Bonafide Transactions in Rupees

All transactions in the SNRR account will be subject to payment of applicable taxes in
India- Google Search

As of My Underating That the payment relates to subscription of an online learning platform, it typically falls under:

1. Royalty (if it involves access to copyrighted material, intellectual property, software, etc.).

2. Fees for Technical Services (FTS) (if it includes the use of technical expertise, know-how, or systems).

Both royalty and FTS are subject to TDS under Section 195.

Payment in SNRR Account:

Payments into an SNRR account are treated as domestic payments for tax purposes and are subject to Indian TDS rules.

Nature of Payment to Coursera:
Online Learning Subscription:

Payments for subscription to platforms like Coursera generally qualify as royalty under Indian tax law. This is because:
You are paying for access to intellectual property (e.g., course materials, software, or content hosted on Coursera).

Payments for accessing online databases or software platforms are considered royalty under Section 9(1)(vi).

As per Section 195, any payment to a non-resident that is chargeable to tax in India requires TDS to be deducted as the SNRRA Account considered as Domestic Payments

Is My Understanding is Correct

If yes, Kindly share any supporting or Case Study Regarding this Scenarion

Thanks in Advance

Regards
Vignesh Raja

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 November 2024 SNRR is a repatriable account can't be considered as domestic payment.
Payments for subscription to platforms like Coursera generally qualify as royalty under Indian tax law. This is because:
You are paying for access to intellectual property (e.g., course materials, software, or content hosted on Coursera). Agreed with your views deduct TDS under section 195 20% plus applicable sc.