For Indian sellers, what is the tax option that must be selected?

[nithiskumar563]

In my opinion it’s better go with exempt option because Fiverr must deduct 1% (5% if no pan provided) from sellers as per Section 194-0 Tax also it is not only for fiverr, it is applicable to the all e-com platform in india. If the seller earns less than 500K INR then they can ask for opt out.

[wanderingartist]

In my opinion it’s better go with exempt option because Fiverr must deduct 1% (5% if no pan provided) from sellers as per Section 194-0 Tax also it is not only for fiverr, it is applicable to the all e-com platform in india. If the seller earns less than 500K INR then they can ask for opt out.

How can I opt out ? I don’t earn anywhere near 500k inr yearly.

[navya_r]

How can I opt out ? I don’t earn anywhere near 500k inr yearly.

How can I opt out ? I don’t earn anywhere near 500k inr yearly.

Get your CA to give you a certificate. Submit that to customer support.

[creativeboymk]

How can I opt out ? I don’t earn anywhere near 500k inr yearly.

Get your CA to give you a certificate. Submit that to customer support.

How to get that certificate? Do we need to send an exemption certificate immediately after selecting the exempt option?

[jarviz55]

Will anyone tell me how to get the exception certificate?

[aishaa_designer]

For people following this thread, I checked with my CA, as well! And @priyasumit786 is absolutely right. Unless you are making more than 20 LPA on Fiverr, you need not register for GST and the Exempt option is applicable!

Hello, I have got same notification, I don’t earn even 5LPA, as you are saying to choose exempt option ( I have a question, in the fiverr article it shows you have to provide a exempt certificate from tax authorities, Do I need to upload the certificate if I select the exempt option? Have you uploaded any certificate? do I need to get the certificate or just select the exempt option and thats it? I will be very grateful if anyone help me with this, Waiting for your reply… Thanks

[archdude4458]

Even if you guys selected exempt fiverr will deduct 1% TCS (5% if no PAN provided), if you gave the exemption certificate to the support then there’ll be no TCS deduction.

Fiverr.com

Fiverr Help and Education Center

One marketplace, millions of professional services. Browse. Buy. Done.

More info here, explained clearly.

This link has more information.

I went with Exempt and now I will be looking for that certificate.

Up till now, based on my research it looks like, as this certificate is new to me so I will firstly check with some NRI friends and CA’s as well. NRIs has to take this certificate in some ways.

Still not found from where to get this so called “certificate”.

[rajat2910]

I choose the exempt option, but still TDS 1% is deducted

Which certification is required from tax authorities right? Where to upload? Can anyone advise.

[navya_r]

This link has more information.

I went with Exempt and now I will be looking for that certificate.

Up till now, based on my research it looks like, as this certificate is new to me so I will firstly check with some NRI friends and CA’s as well. NRIs has to take this certificate in some ways.

Still not found from where to get this so called “certificate”.

NRIs has to take this certificate in some ways.

NRIs get it from a CA. Besides, not all NRIs are eligible for this “certificate” anyway. Only those who live in countries (such as many EU member states) which have treaties with India to avoid double taxation can consult their CA, and usually the CA fills a specific little document for that.

This barely takes half an hour under normal circumstances if your documents are in order.

[b4allb4u]

For people following this thread, I checked with my CA, as well! And @priyasumit786 is absolutely right. Unless you are making more than 20 LPA on Fiverr, you need not register for GST and the Exempt option is applicable!

Thanks a lot for your valuable information.

[prahladyeri]

Refer to the GST and 194-0 Flowcharts given in this Fiverr Support link, they explain everything quite clearly:

Fiverr.com

Fiverr Help and Education Center

One marketplace, millions of professional services. Browse. Buy. Done.

So, two kinds of deductions are applicable on our Fiverr earnings:

1. Section-194-0 (1% TDS): Here is where you need the “Exemption Certificate” stating that you earn less than 5L PA. If you don’t want to do that, you can update your PAN No. and claim that 1% back as refund when you file ITR next year (assuming you don’t incur any tax liability) - it should show up in your Form-26AS.

Note that if you don’t update your PAN No. and also don’t provide an exemption certificate then 5% TDS will be deducted instead of just 1%.

2. GST (1% TCS or 18% for Promoted Gigs): As others mentioned in this post, here you can select “Exempt” and “Not Registered for GST” if you earn less than 20L PA through Fiverr.

The first one (Section-194-0) has been recently introduced in Union Budget 2020 and is implemented on Upwork too.

[nithiskumar563]

Refer to the GST and 194-0 Flowcharts given in this Fiverr Support link, they explain everything quite clearly:

Fiverr.com

Fiverr Help and Education Center

One marketplace, millions of professional services. Browse. Buy. Done.

So, two kinds of deductions are applicable on our Fiverr earnings:

1. Section-194-0 (1% TDS): Here is where you need the “Exemption Certificate” stating that you earn less than 5L PA. If you don’t want to do that, you can update your PAN No. and claim that 1% back as refund when you file ITR next year (assuming you don’t incur any tax liability) - it should show up in your Form-26AS.

Note that if you don’t update your PAN No. and also don’t provide an exemption certificate then 5% TDS will be deducted instead of just 1%.

2. GST (1% TCS or 18% for Promoted Gigs): As others mentioned in this post, here you can select “Exempt” and “Not Registered for GST” if you earn less than 20L PA through Fiverr.

The first one (Section-194-0) has been recently introduced in Union Budget 2020 and is implemented on Upwork too.

For fellow friends who is still confused, selecting the Exempt option doesn’t mean you’re automatically excluded from Section-194 tax unless you provide the exemption certificate to the customer support and specifically ask not to deduct TCS .You can select the Exempt option and provide PAN number and fiverr will deduct 1% tax at every sales, later you can claim it when you pay your income tax (it’ll be reflected on Form-26AS as @prahladyeri mentioned) I don’t know what is up with Export option but I think it’s good to select Exempt option because fiverr will deduct 1% if you don’t bring them exemption the certificate anyways. I’m choosing Exempt because my fiverr income won’t be always above 5 Lac per annum it’s unpredictable for me so I’ll claim the TDS when I pay my taxes. simple as that.

If you are still in doubt then get some advice from CA who have better knowledge about e-com and freelancing.

Edit: Also don’t confuse TCS with TDS, the whole Section 194-O Tax is all about TDS

[venkatameghana]

Refer to the GST and 194-0 Flowcharts given in this Fiverr Support link, they explain everything quite clearly:

Fiverr.com

Fiverr Help and Education Center

One marketplace, millions of professional services. Browse. Buy. Done.

So, two kinds of deductions are applicable on our Fiverr earnings:

1. Section-194-0 (1% TDS): Here is where you need the “Exemption Certificate” stating that you earn less than 5L PA. If you don’t want to do that, you can update your PAN No. and claim that 1% back as refund when you file ITR next year (assuming you don’t incur any tax liability) - it should show up in your Form-26AS.

Note that if you don’t update your PAN No. and also don’t provide an exemption certificate then 5% TDS will be deducted instead of just 1%.

2. GST (1% TCS or 18% for Promoted Gigs): As others mentioned in this post, here you can select “Exempt” and “Not Registered for GST” if you earn less than 20L PA through Fiverr.

The first one (Section-194-0) has been recently introduced in Union Budget 2020 and is implemented on Upwork too.

Exactly! Thank you for putting it across clearly.

[art4kala]

I saw a video in youtube and select “Reverse Charge”, now it deduct 1% on each sale or let’s say I get $7.90 on $10 sale or I get 79% on each sale.
Please let me know if anyone get exemption certificate and get 0% deduction there.

[aishaa_designer]

I choose the exempt option, but still TDS 1% is deducted

Which certification is required from tax authorities right? Where to upload? Can anyone advise.

Hi, Rajat , when you have submitted the exempt option… how you got to know that 1% TDS is deducted ( I mean when the order is completed you got less 1% from your usual earning of the Order transaction or When you have withdrawn the money it has deducted 1% TDS ) please do reply me anyone who submitted… I will be very grateful to you… Thanks

[jitendayama]

Hello Indian Fiverr sellers,
Let me clear out all of your doubts here.
First of all, every E-commerce operators (here Fiverr) have to deduct TCS/TDS from
sellers earnings under Section 194-O (applicable from 1st Oct 2020) which Fiverr will pay to Indian Govt. directly and the same will reflect in seller Form 26AS if PAN number is given to Fiverr.

Now about the options on Fiverr.
Choose the option accordingly:

Taxable: If Earning>5L and you have GSTIN.

Export: If 5L<Earning<20L and you don’t have GSTIN.

Reverse Charge: If Earning<5L and you have GSTIN.
Attach FORM-13(Tax Deduction cerificate for nil TCS) from Section 197
of the Income Tax Act.

Exempt: If Earning<5L and you don’t have GSTIN.
Attach FORM-13(Tax Deduction cerificate for nil TCS) from Section 197
of the Income Tax Act.

FORM-13 under Section 197 of Income Tax Act takes you out of the TCS if your Earning<5L.

Hope it has clarified all of your doubts.

[adiraimaji]

for exempt option some certification is required from tax authorities right?

n some certification is required from tax authorities righ

Have you received any payments in your bank after you chose exempt? I think they will ask you for the certificate at some point

[nithiskumar563]

n some certification is required from tax authorities righ

Have you received any payments in your bank after you chose exempt? I think they will ask you for the certificate at some point

There is nothing to do with receiving payment, this deduction will be carried out right after the buyer placing an order. And yeah I receive payments as usual and Fiverr takes 1% TDS for Section 194-O since I provided the PAN (Deduction takes place when the buyer place the order only not after that and also you can see that in Earnings tabs too).

[rajat2910]

Hi, Rajat , when you have submitted the exempt option… how you got to know that 1% TDS is deducted ( I mean when the order is completed you got less 1% from your usual earning of the Order transaction or When you have withdrawn the money it has deducted 1% TDS ) please do reply me anyone who submitted… I will be very grateful to you… Thanks

Hi Aisha,

Yes after submitted the exempt option 1% TDS is deducted. This deduction is cut after the order submission and show in earning page as “194-O”

[crownmediaa]

Hello Indian Fiverr sellers,

Let me clear out all of your doubts here.

First of all, every E-commerce operators (here Fiverr) have to deduct TCS/TDS from

sellers earnings under Section 194-O (applicable from 1st Oct 2020) which Fiverr will pay to Indian Govt. directly and the same will reflect in seller Form 26AS if PAN number is given to Fiverr.

Now about the options on Fiverr.

Choose the option accordingly:

Taxable: If Earning>5L and you have GSTIN.

Export: If 5L<Earning<20L and you don’t have GSTIN.

Reverse Charge: If Earning<5L and you have GSTIN.

Attach FORM-13(Tax Deduction cerificate for nil TCS) from Section 197

of the Income Tax Act.

Exempt: If Earning<5L and you don’t have GSTIN.

Attach FORM-13(Tax Deduction cerificate for nil TCS) from Section 197

of the Income Tax Act.

FORM-13 under Section 197 of Income Tax Act takes you out of the TCS if your Earning<5L.

Hope it has clarified all of your doubts.

Hi but as per my knowledge GST is not applicable on foreign clients or services that are exported outside india so everyone working on fiverr is exporting service and this is “zero rated supply of goods” under GST section,thats why my CA confirmed,i discussed with 3 different CA persons,may be i am wrong.

[venkatameghana]

Refer to the GST and 194-0 Flowcharts given in this Fiverr Support link, they explain everything quite clearly:

Fiverr.com

Fiverr Help and Education Center

One marketplace, millions of professional services. Browse. Buy. Done.

So, two kinds of deductions are applicable on our Fiverr earnings:

1. Section-194-0 (1% TDS): Here is where you need the “Exemption Certificate” stating that you earn less than 5L PA. If you don’t want to do that, you can update your PAN No. and claim that 1% back as refund when you file ITR next year (assuming you don’t incur any tax liability) - it should show up in your Form-26AS.

Note that if you don’t update your PAN No. and also don’t provide an exemption certificate then 5% TDS will be deducted instead of just 1%.

2. GST (1% TCS or 18% for Promoted Gigs): As others mentioned in this post, here you can select “Exempt” and “Not Registered for GST” if you earn less than 20L PA through Fiverr.

The first one (Section-194-0) has been recently introduced in Union Budget 2020 and is implemented on Upwork too.

Please refer to this! A lot of people seem to be confusing TCS and TDS! You DO NOT need exemption certificate for TCS. For TDS, you only need it if earning more than 5 LPA.

[crownmediaa]

(post withdrawn by author, will be automatically deleted in 24 hours unless flagged)

Earning>20L , and you have GSTIN. GST will be deducted and you can’t claim the refund of it?

I think there is no GST if export is selected and earning is above 20L,check this info from fiverr.

[aishaa_designer]

Hi Aisha,

Yes after submitted the exempt option 1% TDS is deducted. This deduction is cut after the order submission and show in earning page as “194-O”

Thanks a lot rajat for your reply, Okay, As you said it is showing in the earnings page as {194-0} after The order is marked as complete by buyer! I have another question for example order is of $10 and fiverr takes 20% that is $2 and we get $8 that is 80%, so now as 1% TDS is deducted have you got earning of 79% that is $7.9 , Is this calculation correct? I will be very grateful if you clarify this… Thanks in advance

[jitendayama]

Earning>20L , and you have GSTIN. GST will be deducted and you can’t claim the refund of it?

I think there is no GST if export is selected and earning is above 20L,check this info from fiverr.

Hello Crownmediaa,

Yes, if you have selected EXPORT then there will be no GST (GST on Export of services is Zero Rated only if you are getting payment from outside India)

For Indian Sellers having earning<5L they can select EXEMPT and attach the FORM-13 under section 197 of Income Tax Act.

[jitendayama]

Hello Fiverr Sellers,
Let me make it clear for all Indian Sellers about tax form.
-If Earning>5L, choose EXPORT.
-If Earning<5L, choose EXEMPT and provide FORM-13 under Section 197 of Income Tax Act.
Thank you!