CA Day Offer! Get 10% OFF on CAclubindia Pro 1-Yr & 2-Yr Plans. Subscribe Now!

Tax implication for a company taking service from freelancer

493 views 3 replies

xien

135 Points Posted on 03 February 2014

I have a small pvt company. We take service from various freelacer registered on freelancer.com.

The money is first transffered to freelancer.com website where they deduct 10% and pay the rest to the actual freelancer.

In such case how to handle TDS. Because there is no facility to deduct TDS for freelancer.com website.

please tell me how to handle this.

Replies (3)

ishan

none

94 Points Posted on 03 February 2014

U have to deduct tds of freelancer.com as per 194 c. Because ur contract is deemed to be with the site not the employee. So u dont have to worry abt payment to person . And written contract is not nessesary to fall into 194 C tds deduction.

xien

135 Points Posted on 03 February 2014

Ishan thanks. but there is no facility to deduct TDS from freelancer.com. Moreover they are australia based website. how to handle such a case?

Do i have to pay service tax also since it will become export of services?

ishan

none

94 Points Posted on 06 March 2014

You should communicate and convince freelancer.com personel regarding tds deductibility in india... And yes as per reverse charge mechanism you have to pay service tax to govt for each transaction.......