Udmey Inc crediting 1% TDS to Indian instructors

Kiran
Kiran Posts: 101 storyteller rank
in First-time course creation

Hello,

I am an Indian instructor, on my form 26AS UDEMY INC with Indian TAN has credited 1% TDS on the total revenue made in the FY. But Udemy is not deducting this amount from our payment. Is that right?

are they crediting TDS from their own pocket? The udemy support said yes. Could anyone please confirm this? Thank you

Comments

  • EazyBytes
    EazyBytes Posts: 14 traveler rank

    Hi Kiran,

    Suppose if you are eligible for a payment of Rs.100 from Udemy in a month, then Udemy transfer Rs.99 to your account and the remaining Rs.1, they will pay as TDS to Income tax department.

    This way Income tax always aware about the Payments received through Udemy and you are responsible to evaluate your earnings every Quarter and pay the Advance Tax based on your tax slab.

    The amounts in 26AS may not exactly match with what you receive in your account as there will be Dollar-Rupee conversion charges levied by Payoneer/Paypal.

    Hope this helps

  • Kiran
    Kiran Posts: 101 storyteller rank

    Yes that's what I was thinking , but I am doubting my understanding after seeing reply i got from udemy support . They said udemy does not deduct from our payment , Udemy credits this amount from its pocket. check the reply below which I got from support.

    "Thanks for your patience as we checked in with our tax team here.

    We are required to deduct only the TDS under Section 194O of the Income Tax Act, 1961 at 1 percent. However, please be advised that Udemy Inc. (the US entity responsible for making the payment to Indian instructors) had not actually deducted any TDS from your payments and has deposited the withholding amount with the Government out of Udemy's own pocket, on your behalf, due to the last-minute implementation of Indian withholding tax law."

  • CA_Abhishek
    CA_Abhishek Posts: 38 traveler rank

    @Kiran
    @EazyBytes
    Hi, I am a Abhishek Jain, a Certified Chartered Accountant. Pleas note,

    Not only this TDS which is reflected in your 26AS but also Tax withholding @ 15% which is done by Udemy from your USD income and reflected in your Udemy portals dashboard report & form 1042-S ---->>> Both of these tax and FTC, you can claim as rebate while filing your Indian ITR and reduce your total tax liability.

    if you need any assistance with respect to claim FTC, you can connect with me through my website www.tax2save.in or email caabhisheksjain@gmail.com

    Thanks

    CA Abhishek Jain

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