What INR amount to fill when filing India tax returns for GST? Should it match TDS exchange rate?

[061c2cac]

1) Upwork shows USD amount for invoices and the 1% Withholding tax TDS it deducts.

2) Upwork sends direct to bank transfer using the USDINR exchange rate that it gets from its bank on bank transfer date.

3) I think the GST invoice INR value will need to be calculated using the USDINR exchange rate used by Upwork for TDS return filing to match the TDS filing done by Upwork to Indian Tax Authorities. This USDINR exchange rate is most likely not going to be same as the exchange rate for bank transfer of amount.

4) How to know the INR value of 1% TDS that upwork has deposited with Indian Tax Authorities? The Form16A or Form26AS is not populated in time for GST return filing.

5) Is there some other source from where we can get the exchange rate value to use for GST returns, or is it OK if INR value in GST return doesn't match the TDS value?

(Slightly urgent because I haven't filed my last month's GST return due to this confusion, it is already past due date. I have already opened a support request for this, but wondering if fellow community members can please share how they are handling this, or if community moderators have already heard about this in other posts. I found a few other community posts that for annual/quarterly income-tax filing I will probably get this information reflected in Form26AS on income tax portal, but how to get this information in time for monthly GST return filing).

[bobafett999]

You may want to check with local CPA, but logically I would guess that it would be net money deposited in your account.

[061c2cac]

Amount in account is definitely not the correct amount for GST returns. It is only 80% of invoice USD value and also at different USDINR exchange rate from TDS. Ideally, the invoice INR amount in GST return should match the 1% TDS INR amount depositied by upwork. While the difference might be small it can trigger a review or notice etc...

[4fc4e354]

Hi Sachin

I have provided solution to your query in following points:

1. You have to use the exchange rates as per GENERALLY ACCEPTED ACCOUNTING PRINCIPLES(in case of SERVICES) and exchange rate notified by CBIC(in case of GOODS).

2. For any difference in your turnover as per 26AS(TDS deducted) and turnover as per GST, you can prepare a reconciliation statement and keep the same as a proof in case of departmental enquiry.Or there is one more solution of filing of annual return to match the turnover.

I hope that I have solved your query and in case you are still not satisfied you can drop me a message on upwork.

Regards

CA Shrey Salecha

[061c2cac]

Where can I find this exchange rate online? Currently I ask UpWork support every time, and the values they give match the amount they are using for TDS etc, but it is not same as values here: https://old.cbic.gov.in/Exchange-Rate-Notifications

Is there some other place where I can get the exchange rate values without having to ask UpWork support everytime.

[4fc4e354]

you can use exchange rate provided by RBI or bank in which account is maintained. 

[061c2cac]

Do you have any online link or URL which has rates that match the rates used by UpWork. UpWork seems to be using end-of-month rate for invoices of each month, but I can't find out where to find that exact rate. Otherwise the invoice amounts I file for GST won't match the 1% TDS INR value filed by UpWork

[ca_gitesh_bajaj]

First of all, I agree with what Shreyas said.

For RBI Ref Rate - https://www.rbi.org.in/scripts/ReferenceRateArchive.aspx

For Bank Ref Rate - Just google out and you will get for your bank. For Eg. HDFC Forex Rate.

Both changes daily. 

CA Gitesh S. Bajaj

Gitesh Bajaj & Associates