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Indian TDS Tax Withholding on Upwork Earnings

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Sanjay S Member Since: Sep 28, 2020
71 of 121
thanks for your reply, appreciated.
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Sanjay S Member Since: Sep 28, 2020
72 of 121

Hi

 

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 . 

 

Thanks


Sanjay

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Gautam C Member Since: Nov 5, 2018
73 of 121

Hello Upwork,

 

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

 

Thanks

 

**Edited for community guidelines**

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Gautam C Member Since: Nov 5, 2018
74 of 121

Hello Team,

 

Yesterday, i did mailed you about tax query still i did not get any resposne from your side.

 

Can you please check asap?

 

Thanks

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Moderator
Goran V Moderator Member Since: Mar 24, 2017
75 of 121

Hi Gautam,

 

We are double checking this with our team and once we have more details we will post an update here. Thank you.


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Anup D Member Since: Apr 5, 2017
76 of 121

Hi All,

 

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

Anup

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Moderator
Nikola S Moderator Member Since: Jul 2, 2020
77 of 121

Hi Anup,

 

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.

 

~ Nikola

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Gagandeep S Member Since: Apr 29, 2015
78 of 121

I have added my pan number but there are 2 payment coming on 14th october which are deducting 5% of amount. Please fix it and deduct 0.75% of amount.

 

Thanks

 

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Moderator
Joanne Marie P Moderator Member Since: Nov 26, 2017
79 of 121

Hi Gagandeep,

 

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.


-Joanne
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Ace Contributor
Nitin Kumar S Member Since: Jun 9, 2014
80 of 121

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)

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