Thanks for the response that -
payments for Upwork's services are not subject to Indian withholding tax because Upwork's services are performed outside of India, and thus fall under rules in the US-India tax treaty. The treaty relieves the freelancers of any withholding obligation, and instead, Upwork is required to calculate tax on these services and remit directly to the Indian government (under the recently enacted Equalisation Levy).
It will be great if Upwork can provide this information officially to us in writing (on their official letter head) for our records and submission (if needed) to Tax Authorities and our Tax consultants .
Why decduct of 5% Withholding tax? did you check proper in my account. I have alraedy updated my Pan number than why you deduct 5% tax
Can you please check proper my tax information before you have to deduct the tax amount.
Please see attached snapshot
**Edited for community guidelines**
This is with regards to income tax with respect to India.
I have a question, how the freelancers' income from upwork in India is considered. Does it come under GST or it comes under income tax as professional income?
Please share your thought.
Thanks for your question. The GST only applies when both a freelancer and client live in India. The Tax Deducted at Source (TDS) applies to all your earnings, including those from clients in India and around the world.
Upwork will withhold tax on all payments made on or after October 1, 2020. The law requires withholding based on the date of payments made, it does not provide an exception for payments that are related to periods before October 1.
Shouldn't Upwork share the burden, instead of passing everything on freelancer's shoulder. When you're deducting TDS at the Gross Income, Upwork is taking away 20% from it. So how about Upwork can be bit large-hearted and waive off the due taxes on 20% commission and pay it on their own (as Upwork is making 20% not the freelancer)