I'm trying to put answers to your queries, hope you will find this helpful:
1. Reverse Charge Mechanism has yet not been made applicable completely except in the case of domestic transport industry. So no point in paying it on reverse charge basis. You can not pay GST on import of services. TDS is a grey space here as there is no clear notification for services by freelancer based outside of India. My opinion is that ,TDS would not be applicable as per the section 195 of Income Tax Act read with DTAA.
2. You don't need to deduct TDS on Upwork as they are a foreign entity and does not have a office in India. Relevant case law to back this standing is DCIT (International Taxation) Vs. Hydrosult Inc.
Please drop me a message if you want to discuss this in further details. Hope my response was helpful. Thanks!
Hi Shubham, If I am an Agency on Upwork, and I spend 5000 USD every month from the same account that I receive money from foreign clients, what are the GST norms. I don't pay GST on services, however, do I need to pay for the import of services from Upwork.
The provisions for a reverse charge in case of import of services have loopholes and many service receivers use these loopholes to take benefit of GST. I would not be able to explain it here. However, under reverse charge, you need to pay the liability.
Hello Shubham ,
Please share your inputs ,
I am pretty clear about GST and 20Lakh thresold, thank you so much for details answer. I have question regarding GST within Upwork fees, so lets say I got paid $800 for one transaction and Upwork charged $200, Now I'm assuming they are paying 18% of $200 (may be 12% or 18% ) as GST. so as per my example Upwork payiong $36 as GST from my charges, so can I claim back those $ when I am filling GST return ?
I have GST number and filling retruns from last 3 years.
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