Indian TDS Tax Withholding on Upwork Earnings

[Bineesh K]

This withholding tax will be refunded to our account? in future? 

[Vineet B]

Hello Valeria,

I understand that Upwork is required to collect the withholding tax (Tax Deducted at Source) and deposit it with the Indian government. But from what I see in my tax portal, the amount of tax withheld from my earnings is not reflected. Can you please confirm the timeline by which you are required to deposit the withheld tax with the government, or please provide a statement along with the dates and amounts of the taxes are deposited with the government.

Thanks!

[Valeria K]

Hi Vineet,

We are required to do our quarterly filing by 1/31/2021. Then the statements to the freelancers (Form 24Q) will be available within 15 days of that filing or 2/15/21 at the latest. 

[Nisha B]

Hi,

I do all my work exclusively through an Agency in Upwork and all payments go to the Agency. Would the withholding tax apply to me or the Agency?

Regards

[Bibhas D]

I have the same question. All Agency payments are going to Agency account, so is it require to add PAN for individual Freelancer?
Please let me know.
Thanks,
Regards

[Harsh P]

I think Agency as your account will be connected with your Agency account and payment withdrawal happen through your agency account so. 

[Valeria K]

Hi Nisha, Amit, Bibhas and Harsh,

Thanks for your questions. 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 that payment, and remitted in the name (and using the PAN) of the Agency.

[Amit D]

If I am working under agency, do I need to provide my personal PAN and Aadhar details instead of the company's details? (As per the new rules of Upwork for Indian freelancers and companies)

[Joanne Marie P]

Hi Amit,

I'd like to share the information that Lena noted on the announcement she posted here.

For those freelancers and agencies that have provided a PAN or an Aadhaar number:

We are required to withhold 0.75% of all your payments, starting with the first dollar you earn as of October 1, 2020, and forward it to the Indian government. The rate is scheduled to increase to 1% on April 1, 2021.

For those freelancers and agencies that have not provided a PAN or an Aadhaar number:

We will be required to withhold 5% of all your Upwork earnings and forward it to the Indian government. You will be able to claim a tax credit or refund from the Indian government should you pay more taxes than required. 

You will need to add a PAN or Aadhaar number in order to keep the withholding tax at .75% of your earnings.

[Jyoti K]

Hi Joanne,

Thanks for reposting this!

Seems like we will get TDS certificate from upwork every month and we can claim Tax credit/refund if they cut extra from Indian Gov. Make sense?

Thanks Again!

J