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Indian TDS Tax Withholding on Upwork Earnings

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Active Member
Ankitkumar S Member Since: Feb 29, 2020
111 of 121
It's Ankit here. Anyway UpWork shold reduce fees after 50 or 100 dollars in
my opinion. The taxes and international transaction duties are a mess that
I don't even under yet. Fear of IT or ED knocking on Freelancers' doors
seems too real when you see the unknown requirements for DBT.
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Active Member
Ankitkumar S Member Since: Feb 29, 2020
112 of 121
You will have 0.75% TDS withheld if you have added PAN or Adhaar. It's
government of India rules not UpWork and they get these taxes. If you don't
add, it will be 5%.
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Nirmal S Member Since: Aug 14, 2018
113 of 121

Seems, Now Freelancers are buried under Upwork fees, Connect fee, Direct Contract fee, and Now TDS.  I am paying taxes every year on time. I mentioned my whole income there. Don't know why the TDS comes now?

After TDS, we have to ready for TDS fees from 0.75% to 1% from 1 April 2021 and this will continue increasing.

Details Here - Upwork Membrship - $14.99, Direct Contract fee 3.4%, TDS - 0.75%, Transfer to Bank fees - $0.99

 

One more, Upwork never gives the current currency exchange rate. Now in stocks, the price of $1USD is - ₹73.3800/73.4327

But when I tried to transfer money to my bank account, Upwork show - 71.7400 USD/INR

 

We are paying taxes, transition fees, TDS. Please let me know, why you are not giving the full value of USD to INR?

 

Regards,

Nirmal Singh

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Rajesh M Member Since: Aug 29, 2020
114 of 121

Hello

 

Indian GST law says in case you are provding export of services and your export receipts are below 1 Core, you need not to pay GST on export of services. You have to submit letter of undertaking online at GST website.

 

Upwork has started taking GST number from agencies doing work from india at upwork. Though it seems optional primafacie and upwork has provided this for future set up of  upwork permanent office in india.

 

Could you all give more light on the subject on this community so that more clarity on upwork stand with resepct to LUT with respect to small agecies working on upwork.

 

Rajesh.

 

 

 

 

 

 

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

Hi Rajesh,

 

Thanks for your question. Could you please clarify if you're referring to the GST or TDS charge? Also, could you please provide more information about the specific agency-related scenario you're asking about, so we could advise you in more detail?

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Active Member
Shyam T Member Since: Nov 5, 2018
116 of 121

Hi,

 

I have freelaner account in upwork and I withdraw funds to my company's bank account.

 

So to get the credit/regund of TDS, Should I add my company's PAN number or my pesonal PAN number? 

 

Please advise.

 

Thanks

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

Hi Shyam,

 

Since we cannot offer specific tax advice, you may wish to consult with a trusted tax expert or advisor.

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Active Member
Shyam T Member Since: Nov 5, 2018
118 of 121

Thanks for revert.

 

I have already taken advise from tax expert, he saiys to get credit I have to add company's PAN number because I receives payment to company's account.

My question is UpWork allows me to add my company PAN number in my profile tax settings?

 

Thanks

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

Hi Shyam,

If you've managed to add either your PAN or Aadhaar number successfully, i.e. it was accepted and you didn't get an error message, you're good to go. If a freelancer is working on a contract under an Agency, the payments go to the Agency's account. So the tax will be withheld on those payments and remitted in the name (and using the PAN) of the Agency.

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Active Member
Kiran B Member Since: Mar 26, 2017
120 of 121

Please tell me any one why upwork start charge WHT fees

 

**Edited for community guidelines**

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