How to deduct TDS on payment made to foreign freelancers through upwork platform

Payments to foreign freelancers via Upwork fall under Section 195 (TDS on non-resident payments).

Steps:
1. Identify the nature of service ,  software development or technical services attract 10% TDS plus surcharge and cess (effective rate around 10.56% for small amounts)
2. Check if the freelancers country has a DTAA with India ,  USA, UK, and most EU countries do. Treaty rate is often 10-15% and can be applied if the freelancer provides a Tax Residency Certificate (TRC)
3. For each remittance above Rs 5 lakh, you need Form 15CB (CA certificate) and Form 15CA (online filing) before making the payment
4. Deduct TDS on the gross invoice amount including the Upwork service fee, unless Upwork provides a clear breakdown
5. File Form 27Q quarterly for TDS on non-resident payments

Note: Upwork invoices may not always separate platform fees from freelancer earnings. For safe practice, deduct on the full invoice.

This [foreign remittance Form 15CA and 15CB guide](https://taxgarden.in/blog/form-145-form-146-foreign-remittances-india-2026) covers the filing categories and compliance checklist.

Two updates: the 2% Equalisation Levy on e-commerce operators was abolished from 1 Aug 2024, and domestic-law TDS on FTS to non-residents is 20% + surcharge & cess (Sec 115A, raised from 10% by FA 2023); 10% needs a DTAA rate with TRC and Form 10F, and services that aren't FTS under a 'make-available' treaty (e.g. US) need no TDS absent a PE.