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Re: TDS Deduction liability on Indian Clients

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Active Member
Pratyaksh A Member Since: Oct 11, 2020
21 of 26

Hi Vladmir,

 

Please find below my clarification for your query

 

I'm talking about the entire payment paid by me as a client to upwork. 

For example, if I hire a freelancer for 100$+ 3$ (Processing Fee) = 103$. I'm referring to this entire 103$. I've been advised to deduct TDS on the same.

 

Thanks

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Active Member
Pratyaksh A Member Since: Oct 11, 2020
22 of 26

Can someone please help with this query?

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Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
23 of 26

Hi Pratyaksh,

 

I apologize for the delay in following up on your question. Please note that we'll definitely update this thread once we receive more information regarding the specific process you asked about. Thank you.

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Active Member
Pratyaksh A Member Since: Oct 11, 2020
24 of 26

Hi, I'm an Indian client and have recently hired an Indian freelancer via upwork. Upon discussions with my CA, he is asking me to deduct TDS on the amount paid to Upwork for the contract as per some Income Tax Act Clause. However, I'm unable to understand the process. Can somebody from Upwork help resolve my query?

 

Thanks

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Active Member
Sanjaya Kumar P Member Since: Jan 25, 2019
25 of 26

deduct TDS on the amount paid to Upwork for the contract as per some Income Tax Act Clause

 

True. Upwork should provide some way to comply to this. This is the reason I, being an Indian, don't hire Indian freelancers.

Ace Contributor
Vijayvithal J Member Since: Oct 24, 2017
26 of 26

I agree,
I have avoided Indian clients till recently because of the Tax Issues,I have one now and his first payment will open a pandora's box for me.

  1. The client is required to deduct GST and TDS for the freelancer and deposit it. For this he needs the freelancers GSTIN and PAN number...
  2. Similarly the freelancer is required to record the outward supply of services, for this the clients GSTIN is required.
  3. The clients GST filing will show a payment of Rs 100/- to me, My filings will show a reciept of Rs 80 (assuming 20% commission taken by upwork).
    1. I am not sure how the missing 20% will be handled by the system.
    2. I would prefer the client showed a payment of Rs 20 to Upwork and Rs 80 to me...

 

With the Indian government growing desperate for revenue and imposing heavy fines on the smallest mistake, Upwork needs to consult their CA and resolve these issues asap....

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