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Indian TDS Tax Withholding on Upwork Earnings

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Active Member
Ankitkumar S Member Since: Feb 29, 2020
91 of 121

Try making sure your pan has the same details as provided for your profile. It might be a general issue since it's a new thing. Wait for them to solve it and don't worry if it's 5% even after change since you can claim it when filing taxes next year.

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Moderator
Valeria K Moderator Member Since: Mar 6, 2014
92 of 121

Hi Ashish,

 

Could you please check your Tax Information page in your Settings and make sure your PAN number is added there?

Thanks!

~ Valeria
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Sukanya P Member Since: Sep 13, 2015
93 of 121
I think your client has not made the payment yet for last week. So you will
show only the TDS as pending in red. When the client clears the payment you
will see the invoice amount minus the TDS and service fees. Hope this helps.

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Active Member
Ankitkumar S Member Since: Feb 29, 2020
94 of 121
Yes. I realized later that I had no payments done before October and the
TDS was for one being processed. So maybe the colour and look of it will
change once it's cleared and invoiced.
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Gagandeep S Member Since: Apr 29, 2015
95 of 121

Joanne Marie P

 

That is fine. I have added pan card but the future deduction is 5%  https://share.getcloudapp.com/12ur1een instead of 0.75% .

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Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
96 of 121

 Hi Gagandeep,

 

Thanks for the follow-up. I've checked your account and will follow up with our team to investigate further. I'll provide more information as soon as possible.

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Sukanya P Member Since: Sep 13, 2015
97 of 121

TDS needs to be charged on the payment made to the contractor and not on the fees that Upwork withholds before paying the contractor. You cannot withhold the tax for the amount you are not actually sending into India, but are retaining in another country. Can you please explain?

 

The TDS explained on the Help page says this.

In India, Tax Deducted at Source (or TDS) is a means of collecting an income tax. Businesses are required to set aside a government portion for every payment they make in India, which is sent directly to the Indian government.

A law enacted in March and effective as of October 1, 2020, requires e-commerce operators outside of India (such as Upwork) to begin collecting TDS on payments made to service providers (such as the freelancers and agencies that use Upwork) based in India.

 

Upwork fees is not paid to the service providers, so why is TDS withheld on that amount?

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Siva K Member Since: Mar 13, 2015
98 of 121

Sukanya made a right point.

Upwork should withhold tax only for what freelancer earns. Not including upwork's fee.

I am seeing 0.75% deducted for the total amount client paid (including upwork fee).

Indian tax department will calculate the total amount (including upwork fee) as taxable based on TDS remitted. It is unfair.

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Bibhas D Member Since: Oct 21, 2015
99 of 121

This is valid point. Agreed.

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Mithun K Member Since: Oct 14, 2020
100 of 121
Hi,
I worked on a fixed price contract of $100. Work was submitted and approved by the client. Payment available to me is $75.
$20 service fre and $5 is WHT.
What would be WHT of $5? I was not aware of it because while submitting the proposal upwork said that only $20 will be deducted as service fee.
Contract is still open.

Thanks!
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