Fiverr lists the total order amount in Form 16 and not actual earnings

[rajat_bhat]

Hi, I'm an Indian seller. Recently I received the Form 16 from Fiverr and I see that they mention the total order amount as my earnings. Which would lead me to have to pay tax on the whole amount. But in actuality, we sellers earn only 80% of that amount and Fiverr takes the rest 20%. For example if someone has total order amount of $1000 then they get $800 out of it. So shouldn't $800 be mentioned in the Form 16?

I believe its only fair that they mention the actual earnings which the seller gets, since we'll be charged tax on the amount mentioned in the Form 16. As per the example, we'll have to pay tax for $1000 when we've got only $800. I wrote to the Fiverr support on this and as expected they asked me to contact local tax authorities if I have a problem with tax regulations 🤦‍♂️ . 

What are your thoughts on this? Isn't everyone facing this? 

[barrisam]

I was going to ask you to contact support, but you already did and their answer is not encourging. I do believe you should be charged for tax after the 20% cut. I mean even our fiverr earnings is calculated like that. I don't understand why they did it this way. You can try contacting the tax authorities to hear what they say.  

Wish you the best of luck.

[hitesh9891]

Hello Rajat,

Recently I facing this issue in year of 22-23, that you faced earlier in year of 21-22. So can you please share what you have done in 21-22 while filling your income tax. 

Thank you in advance.