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

[chiragdhanak25]

Thank you so much @chiragdhanak25

So I am going to choose EXEMPT. Thanks a lot.

Also, can you help me with one more question? This question is for the future but I am curious to know about it as well

If the income reaches 10L-18L a year, what category should we select? or Fiverr will allow to make us changes thereafter?

They allow to change profile anytime

[sahaamit9486]

They allow to change profile anytime

Thanks a lot for your valuable guidelines. Now I’m able to clear all of my confusions. Again thank you and God bless you.

[eternalvideopro]

They allow to change profile anytime

Yes, I just saw. Thanks you so much @chiragdhanak25

[stdwares]

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.

Awesome! Thanks for a complete response. I’ve just one question though.

Is this 5L amount you’re saying from ONLY Fiverr, or all sources cumulative?

I’ve already submitted choosing Taxable, but I think it should be Exempted. How do I change it now?

Thanks a lot!

[rajat2910]

Hi, rajat can you help me, in filling the form, I haven’t filled yet, I earn below 5LPA , I have two questions for you #1 The form has some fields which as mandatory and some are not, will it be okay if I only fill mandatory ones, such as name, state, and citizen of india, gst yes or no, and exempt option, Will it be okay if Ieave the fields blank such as company name, address, city, postal code?

#2 for gst registered (yes or no) option, which option I have to select as I earn below 5LPA,

I have also attached form images

I will be very grateful if anyone who has filled the form helps me out! Thanks in advance!

Screenshot 2021-05-16 140300497×682 23.4 KB

If your earning is below 5LPA then no GST require. (GST is for above twenty lakh). You have to fill all mandatory details and also state, address, city, postal as per PAN. Try to include PAN it will deduct 1% TDS on each order (TDS under 194-O), If you don’t have PAN it will be 5% TDS.

[kumarhegdearts]

we need to fill this form if we selected exempt option?

[rajat2910]

we need to fill this form if we selected exempt option?

Which form? Is there any form and certificate you got?

[jarviz55]

Hi there. Is any Freelancers from India filling ITR for the Income Tax? If yes which one we have to file? I am done with my reasearch and it's super confusing. Whether we have to file ITR 3 or ITR 4. And will you tell me what are the documents we need to file? It helps me alot. Not only me, Lots of freelancers from India too.

Thanks,

Javriz

[datapic]

Hi all.

I'm a new seller and was creating my first gig yesterday.

When the question about "Select your 'TCS under GST' category" came up, I searched and found this thread, which was very helpful.

I also looked for other sources of information, and found the GST Council Website.

They have an FAQ  page, which has a link 'FAQs on TCS'. The link points to a PDF file. It is updated in 2018, but is the one presently available on their website. (So it must be current.)

The content of the GST Council's PDF on this matter is self-explanatory. In fact, this particular issue is highlighted in red in that PDF.

I have attached some screenshots for convenience.

Does this not make the issue clear? Please do comment.

(I chose 'Exempt' for the 'TCS under GST' category because of the above - and because I am exempt from Registration as per the GST Act/Rules/Notifications.)

 

[techtransit]

On 5/21/2021 at 6:18 PM, chiragdhanak25 said:

no there is no requirement of any certificate, it means only exempted from GST, your TCS will be deducted @1% mandatory.

i  am confused here because fiverr has deducted TDS is   under 194-O , which is related to eCommerce whether GST  registration is mandatory or not ?

[dhanakchirag]

All the traders/dealers selling goods/services online would need to get registered under GST even if their turnover is less than the prescribed threshold limit, for claiming the tax collected by the aggregators. 

[akarshsp]

Hi, I have been a regular seller on fiverr for almost 10 months now. Just now only I realised that I haven't filled my PAN number in the billing info. Earlier I thought that I had filled it with my PAN number. A 5% tax was collected all this time. Will I be able to get the refund of the tax collected till now? I have filled the PAN number only now. Please someone help me. 

[akarshsp]

Hi, I have been a regular seller on fiverr for almost 10 months now. Just now only I realised that I haven't filled my PAN number in the billing info. Earlier I thought that I had filled it with my PAN number. A 5% tax was collected all this time. Will I be able to get the refund of the tax collected till now? I have filled the PAN number only now. Please someone help me. 

Edited December 29, 2021 by akarshsp

[cc_animation]

I'm not sure, but I doubt it. FIverr needs to pay the tax to the tax revenue service so I doubt they'll retro-actively refund the withheld tax. You might be able to offset paid taxes when filing your own tax returns. That is if your local tax revenue service allows this.

Edited December 29, 2021 by cc_animation

[vaishali_r]

Hi there, 

In earning section some money is shown, how i recover them, 

Please guide me properly. I am from india. (indian freelancer can help how they claim) 

Vaishali

[aarontgladiator]

You can't. That's the tax deducted by the government.

[rkgolla]

Please select exemption only if you providing services except from GST, if services you're offering atracting any GST slab including zero rated then select TDS.

For reference experienced services under GST are Books, maps, newspapers, journals, non-judicial stamps, postal items, etc .. 

[designstudiobd2]

Thanks 

[kavya_shah]

It will appear in your Form 26AS and you will also get TDS certificate from Fiverr over e-mail. You can enter the amount as Tax Deducted at Source (TDS) while filing your Income-tax return and it will get deducted from the total tax you are liable to pay. If your tax liability is lesser than the TDS deducted by Fiverr you will get a Income tax refund from the government after your return is filed and processed. But to do this you will have to file your income tax return even if your taxable income is below basic exemption limit to claim the TDS. Hope that helps!

Edited February 2, 2022 by kavya_shah

[bits168]

5 minutes ago, kavya_shah said:

You can enter the amount as Tax Deducted at Source

Thanks for the info, but what about it being USD and the exchange rates? Do we just show them the amount in dollars and leave it up to the authorities? Or do we calculate the rapidly changing exchange rates?

Thinking of filing ITR for the first time.

[kavya_shah]

Just now, bits168 said:

Thanks for the info, but what about it being USD and the exchange rates? Do we just show them the amount in dollars and leave it up to the authorities? Or do we calculate the rapidly changing exchange rates?

Thinking of filing ITR for the first time.

The equivalent INR amount will automatically appear in your Form 26AS/ TDS certificate, so you don't need to do any calculations. In fact, with the new ITR filing system, you can download a pre-filled ITR from your account and verify/ make changes before you file the return. Hence, any TDS will automatically appear in the auto-filled form but sometimes there are bugs so it's best to verify which they mention on the e-filing website as well.

- A CA Final student (Just mentioning this for you to know that it's credible information)

[bits168]

8 minutes ago, kavya_shah said:

it's credible information

Yes definitely! I've your answers earlier too. And the way you put your points clearly already tells me that this is coming from a professional.

[kavya_shah]

3 minutes ago, bits168 said:

Yes definitely! I've your answers earlier too. And the way you put your points clearly already tells me that this is coming from a professional.

There's a lot of nonsense on the forum, hence I mentioned that. I hope it did not come off as rude or arrogant 😅

[bits168]

32 minutes ago, kavya_shah said:

I hope it did not come off as rude or arrogant

Don't worry about that. It didn't.

[neek_design]

I am seller with GST Number. How are we supposed to generate GST invoice to avoid mismatch between GSTR 2 and GSTR 3B.