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TDS (Tax deduction at source) Advice required from Upwork mods and Indian freelancers

innovatusc
Ace Contributor
Prashant R Member Since: Dec 17, 2015
1 of 6

I am about to finalize a project with an Indian client, a Pvt. Ltd company. Now this guy says he will have to pay 10% as TDS (since apparently, Upwork bills him for TDS or since he is contracting this work to an Indian freelancer) over and above the standard 20% commission for a fixed price project. My question is does Upwork charge a 10% TDS while billing Indian clients or is the client liable to pay TDS for work contracted through Upwork? Any and all advices will be appreciated. Thanks guys.

cylver1z
Community Guru
Ryan C Member Since: Feb 3, 2017
2 of 6

Hello Prashant,

 

Upwork doesn't charge any type of tax to clients and Upwork doesn't charge Indian freelancers for any type of tax as well. The only taxes charged to freelancers on the site are for EU freelancers (VAT) and Australian freelancers (GST). Thank you.


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innovatusc
Ace Contributor
Prashant R Member Since: Dec 17, 2015
3 of 6

Thanks Ryan for confirming. So, all that the client needs to pay is the total bid amount submitted? No TDS and GST to be paid to Upwork? Am I correct? And if the job is through Upwork, then should the client be deducting TDS and GST from what I am supposed to be paid for fixed price projects, do you know? 

cylver1z
Community Guru
Ryan C Member Since: Feb 3, 2017
4 of 6

Hello Prashant,

 

The client should pay the exact amount as stated in the milestone/contract. Upwork will automatically deduct GST to the freelancers. GST will be applied to applicable Upwork fees, including the Upwork service fee, premium Upwork memberships, and purchases of Connects. This tax will be collected by Upwork and remitted to the Australian Taxation Office,  unless you provide a valid ABN number and acknowledge that you're registered for GST.

Here's a link to the Australian GST for more information.


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petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
5 of 6

@Ryan C wrote:

Hello Prashant,

 

The client should pay the exact amount as stated in the milestone/contract. Upwork will automatically deduct GST to the freelancers. GST will be applied to applicable Upwork fees, including the Upwork service fee, premium Upwork memberships, and purchases of Connects. This tax will be collected by Upwork and remitted to the Australian Taxation Office,  unless you provide a valid ABN number and acknowledge that you're registered for GST.

Here's a link to the Australian GST for more information.


 I believe Prashant is in India, not in Australia, in which case none of the above applies at all.

bobafett999
Community Guru
Prashant P Member Since: Sep 29, 2015
6 of 6



 I believe Prashant is in India, not in Australia, in which case none of the above applies at all.


WOW..another freelancer with same name as mine and my name is not that common like 'Bob' or 'Jane'.

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