There is new type of charges in terms of TDS.
TDS stands for tax deducted at source. … The company or person that makes the payment after deducting TDS is called a deductor and the company or person receiving the payment is called the deductee. It is the deductor’s responsibility to deduct TDS before making the payment and deposit the same with the government.
Section 194O-TDS on Payments Made to e-Commerce Participants
E-commerce operator is not required to deduct TDS if the gross amount of sale of goods, services, or both during the previous year does not exceed Rs 5 lakh and if the e-Commerce participant has furnished his PAN or Aadhaar.
If the e-Commerce participant does not furnish his PAN or Aadhaar, TDS must be deducted at the rate of 5%, as per provisions of Section 206AA.
So please add your PAN details as soon as possible to your accounts, to avoid a 5% deduction.
So, we as freelancers now have to add PAN details also…
So my question is where is the PAN detail required…Is it required on the freelancing sites like Fiverr or upwork wherever a freelancer is working or is it required on the payment providers gateway like PayPal or Payoneer whichever a freelancer is using…
And second question is does the tax applicable only when a freelancer earns a total of 5 lacs or more in a year or is it something else…
Lastly i think all of the freelancers have already added their PAN info in the payment gateway which ever they are using, cuz without adding that no payment gateway be PayPal or payoneer, no one will deposit the amount in our bank… So in my view this TDS is not applicable for freelancers like us…
Do let me know your opinion about this…
Yes bro, You are right. but fiverr is charging TDS from my every order from last 3-4 days. my earning is not more the 5 lacs and i also added pan card details.
You faces any issue like this?
i added but still its charging 1% tds. also my earning is not more than 5 lacs.
Now we have to add the PAN details in the billing information section with the applicable category.
and the TDS will be deducted at the very first step of Payment done by the customer.
so in our case, it is Fiver. and for the Payment portals, we have already submitted the details but there will be mo tex deductions.
and the TDS is only applicable when you earn more than 5 lakh in a financial year.
and we still have 2 month to end this financial year.
you might have to contact customer support, if you don’t get that amount on 1st April.
fiverr customer support tell me that the TDS apply on whole life earning not a financial. means its counting 500,000 from when i started fiverr. in my case from past 3 years.
Same issue occure on my side… with out pan card tds deducted 5%, so i contact my CA and he told me to add the pancard details on website so i add the pancard details… without pancard 5% tds deducted and now 1% TDS deducted… My Earning is more than $20,000 from joint to Fiverr up to now.
This is the first time happen and see this tds featured… we need to more how it is work this.
Yes, But as I know TDS apply when earning is more than 5 lakhs in A year but fiverr counting the earning from the start.
I don’t understand why this is happening? It didn’t happen before. Even after adding pan details TDS is being cut from us. What will happen to this money? why is it being taken from us? Under what conditions and when will we get it back?
Same here, I have not earned 5 lakh from Fiverr yet so I don’t see any reason why TDS should be deducted.
I have only started working recently and the TDS is deducted at the source. My earnings till date has not crossed 500$ yet, then why the TDS?
has anyone found any solution most seller have not cross 5 lakh rs mark and it still charging tds
Yes, same here, why are we getting this TDS here on Fiverr? Why do they require our PAN details here, we are already providing it on Payoneer/Paypal.
Those persons whose TDS is deducted can claim refund of the same by filing their Return of Income in India. The TDS deducted by fiverr will be reflected in your Form 26AS. While filing the Return of Income, you can claim credit of the TDS deducted reflecting in your Form 26AS. You will get the refund of the same or your tax liability will be reduced to that extent.
The Form 26AS can be accessed through your account on e-filing portal of the Income Tax Department, India.
But, in the form 26AS it is showing nothing. I checked for every year and for all of them its 0 there.
Will TDS be deducted on every order? I’ve also added the pan card details but don’t know what to mention in the “How is your service taxed?(mandatory).”
Can you please guide?
Yes, TDS 1% will be deducted on every order.
It will take some time from the date of transaction to reflect in your Form 26AS. The TDS us 194-O is deducted from 01.10.2020. So such TDS will be reflected in Form 26AS of AY 2021-22.
You can view the TDS deducted from the tab “Earnings”.