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
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
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."