Service Tax on Freelancer websites like freelancer.com, Service Tax

[Mudit Jain]

If websites like freelancer.com are providing freelance work to Indian freelancers by Indian businesses. They are collecting payment on behalf of freelancer from the client and acting as a safety net. Do they have to pay taxes on the whole project money collected?

Let me take an example - Indian Company ABC hires Freelancer Mr X via freelancer-india.com for ₹ 100,000. 20% is their commission. Then do they have to pay service tax on 20,000 or the whole amount 100,000 ?

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Service tax is payable on ₹ 20.000/- which is the commission earned.

[Ganeshan Kalyani]

For 80 thousand they are pure agent .