Direct contract Cancelled unexpectedly

[harsh_kukreja]

I made a direct contract with the client. She asked me to do a job with a month's salary. I added the milestone of $500 and $1600 she accepted the $500 and started the contact.
In the contract, it is stated that when it's started (It's started before the date of the contract signed on Upwork). Suddenly she cancelled the contract, change all the passwords.
 I need that money because I worked for a week for her, spend a lot of hours guiding her. I declined other offers just to be on her project.

What can I do know now ? Please help!

[prestonhunter]

re: "What can I do now?"

Probably nothing.

Clients are allowed to cancel contracts at any time. As are freelancers.

It sounds like this client no longer wants to work with you.

Move on.

[harsh_kukreja]

If i file a dispute, will upwork help me on this?

[prestonhunter]

https://support.upwork.com/hc/en-us/articles/360047357614

This article says there is dispute assistance available.

But the simple thing to do is to let this go.

The client clearly no longer wants your services.

[harsh_kukreja]

Thanks preston, but what about the days I spent on her project.

[prestonhunter]

re: "but what about the days I spent on her project."

If there was no money in escrow, and no hours being logged that will be automatically charged to her credit card, then she does not owe you any money.

If you were working on her project, you should have had something set up that ensured payment. At this point, I am not convinced that you did that. It sounds to me like you were doing a bunch of work for a client without having the contract and payment mechanisms clearly worked out.

I wish I knew more about direct contracts, but I don't. If you want to dispute this, you will need to get information from someone who knows how to do so... IF it is possible.

Sorry.

[NikolaS]

Hi Harsh,

I checked and it seems that you already created a support ticket regarding your concern. I also shared your report with the team handling your case and one of our agents will follow up with you on your support ticket as soon as possible to assist you further. 

[tlbp]

You had a milestone, was the money in escrow? You should have been asked to confirm the refund of money in escrow when the contract closed. 

[harsh_kukreja]

May I know if i get paid from Upwork to my saving account?
am I doing something wrong?
Do i need a current account to get this payment and show this work as my business?

[ashrafkhan81]

I am not entirely clear on what you are asking. 

But you can get paid in both Currents as well as Saving bank account. You can have a current account under your name or a registered business name. In both cases, you can get the payment from Upwork. If your current account is in the name of a business, you need to provide proof that you are an owner or authorized person for that business for Upwork to process your payments. 

If you are asking for tax purposes, you need to decide where you want to show this income. You are free to show it as business income, in this case, you get the payment in the current account and file it in company tax returns. 

If you want to show it as personal income, your CA will show this as additional income from other sources. 

A simple solution is to check the PAN card you have on Upwork records is it a personal PAN or Company PAN? Because Upwork will credit the WHT tax amount to the PAN linked in their system. 

So if you have personal PAN updated here, and get the credit in your Company account, which will have a different PAN, then you will run into a problem. Upon scrutiny, the IT officer will demand a tax deposit for the appropriate WHT amount reported by Upwork. So be careful here.

[harsh_kukreja]

Thanks Ashraf for being here.

Actually my concern is currently i have no other source of income, i quite my job.
If i earn one or two Lakh INR per month from upwork. Can my CA show that earning in saving account. (Now personal saving account and personal PAN is attached to upwork payments).

In this case IT officer will say me it's a business and you need to pay the business taxes?
I think i can't pay business taxes with saving account.

[PradeepH]

Hello Harsh,

We're unable to provide legal or tax advice, so I would recommend speaking with a local tax advisor about how you can pay your taxes.

Thank you.

Pradeep