Indian TDS Tax Withholding on Upwork Earnings

[Vladimir G]

Hi Nitin,

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).

[Isabelle Anne A]

The way the WHT amounts have been listed in our Reports is very confusing. For me, who works with the same clients almost every week, it's not clear which WHT amount is associated with which week of work. 

How do I ensure Upwork's not taking 5% instead of 1% from me when the pending dates of the WHT fees are marked for a future date? Can someone from the team please confirm that at least?

[Rupesh B]

Hello Sir/Madam My latest payment is showing me 5% withheld which is is already in processed . If i provide my PAN can i get reverted with from 5% to 0.75% or it is not possible for this payment.?

Thanks

[Nitin Kumar S]

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Vladimir G wrote:

Hi Nitin,

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).

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Hi Vladimir! Thanks for your prompt response. However, I think you misunderstood my question. What I'm trying to ask is: Upwork is deducting TDS on gross income of the freelancer, so you're making us pay taxes even for the 20%/10%/5% amount that's going into Upwork's pocket. Shouldn't Upwork be sharing the load something like this

X made 500 USD on a project

Total TDS: 3.75 USD

Now what X actually got: 400 USD

What Upwork got:100 USD

So shouldn't Upwork pay 0.75 USD out of 3.75 USD to share the burden with freelancers. Not a tax expert but these are my thoughts

[Chauhan V]

Hi,

I've earn $73.67 on last week cycle. Now I've only $0.55 in pending,

Transactions history:

Withholding Tax - Ref ID 330830911 --- ($0.55)

Service Fee for Hourly - Ref ID 330830911---- ($7.37)

Invoice for 09/28/2020-10/04/2020 -- --- $73.67 -----REF-ID -330830911

Can anybody help me with this?  I don't understand why this much about is deducted as TAX ?

Regards,

Chauhan V

[Bojan S]

Hi Chauhan,

We're checking this with our team and will get back to you once we have more information. We appreciate your patience while we look into this.

[Chauhan V]

Hi Bojan,

Is there any update for me?

Regards

Chauhan V

[Goran V]

Hi Chauhan,

I`m sorry about the delay with this. Our team will reach out to you via ticket as soon as possible and will assist you further. Thank you.

[Ankitkumar S]

The pending will stay pending for three months. It’s 0.75% tax deducted from your total payment. The TDS will be in quarterly cycles so I think they’ll keep adding those in pending section and give us a form later. There is nothing wrong with your payment. I was worried about the look of it too. I hope they find a better way to show it.

[Ashish T]

Why is my tax withholding cut by 5% while I have given my PAN details?