Fiverr Community Forum

Why is fiverr cutting TDS at 5% when I am not in the category?

Hi, I just started my Fiverr career and completed my first order. My total income in the previous year is not crossing 5 lakhs then why is Fiverr taking 5% as TDS from me?! It is not acceptable.

If the e-commerce participant is a resident Individual or HUF and the gross sales exceed Rs. 5,00,000 in the financial year, TDS will be deducted at the rate of 1% on Gross Sales.

If the deductee does not provide the PAN or Aadhaar, then TDS shall be deducted at the rate of 5% irrespective of the gross sales amount.

3 Likes

That’s a question best directed at Fiverr CS.

We’re just Sellers and Buyers on the Forum.

3 Likes

Sellers from India have to fill tax information as well as fill the PAN. If you do not fill PAN then a TDS of 5% will be deducted otherwise it will be 1%. Upon filling the PAN no , it will automatically deduct 1% for the orders after filling the PAN details.

You can also check this.

5 Likes

Also, I contacted CS with the similar concern, The last date to add PAN number was 25th April, 2021, then only you can get reduced TDS deduction i.e. 1%. Adding PAN after 25th will result in 5% deduction no matter what. The only response I got from CS is to reach out to your tax advisor in India.