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Indian TDS Tax Withholding on Upwork Earnings

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

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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Community Guru
Isabelle Anne A Member Since: May 19, 2014
82 of 121

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?

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Active Member
Rupesh B Member Since: Apr 4, 2017
83 of 121

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

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Ace Contributor
Nitin Kumar S Member Since: Jun 9, 2014
84 of 121

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).


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

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Active Member
Chauhan V Member Since: Jul 20, 2020
85 of 121

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

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Moderator
Bojan S Moderator Member Since: Mar 9, 2018
86 of 121

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.


~ Bojan
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Active Member
Chauhan V Member Since: Jul 20, 2020
87 of 121

Hi Bojan,

 

Is there any update for me?

 

Regards

Chauhan V

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

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.


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Active Member
Ankitkumar S Member Since: Feb 29, 2020
89 of 121
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.
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Active Member
Ashish T Member Since: Oct 8, 2020
90 of 121
Why is my tax withholding cut by 5% while I have given my PAN details?
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