Tax filing on full price or 80% price

[shaileshputhran]

I am working as a freelancer here on Fiverr. Fiverr charges 20% as the commission. And rest of the amount gets deposited in the bank.

I get only the 80% of the earnings. So technically I should be paying tax on those 80% right?

In form 16A where the TDS is deducted.. they are showing my earnings as 100% price.

So should I pay tax on 100% or 80%?

Why can't they just charge me tax on the money deposited in my bank by the platform? Earlier I used to pay it that way.

Please guide!

 

[donnovan86]

Talk with a tax professional in your country 🙂

[priyank_mod]

50 minutes ago, shaileshputhran said:

I am working as a freelancer here on Fiverr. Fiverr charges 20% as the commission. And rest of the amount gets deposited in the bank.

I get only the 80% of the earnings. So technically I should be paying tax on those 80% right?

In form 16A where the TDS is deducted.. they are showing my earnings as 100% price.

So should I pay tax on 100% or 80%?

Why can't they just charge me tax on the money deposited in my bank by the platform? Earlier I used to pay it that way.

Please guide!

 

Yes, that difference exists. 

You need to make your CA understand the difference by providing your annual 'activity report'. It can be downloaded from the earnings page. You can also show expenses on promoted ads and seller plus as 'expenses' from quoted gross earnings. 

[shaileshputhran]

12 hours ago, priyank_mod said:

Yes, that difference exists. 

You need to make your CA understand the difference by providing your annual 'activity report'. It can be downloaded from the earnings page. You can also show expenses on promoted ads and seller plus as 'expenses' from quoted gross earnings. 

Does that mean I should pay tax only on 80% and not the 100% price quoted in form 16A?
And yes I have shown earning report to my CA. He says that then why would fiverr say that you are getting 100% price?

[priyank_mod]

2 minutes ago, shaileshputhran said:

Does that mean I should pay tax only on 80% and not the 100% price quoted in form 16A?
And yes I have shown earning report to my CA. He says that then why would fiverr say that you are getting 100% price?

194-O works the same way for anyone who is running a business through an online platform. Tax is 1% of gross sales. People who sell on Amazon, Flipkart or Swiggy also receive the tax document just like us. Your CA needs to map the billing amount of orders, fiverr commission and expenses with the money you received in your account.  

https://cleartax.in/s/section-194o