Income from freelance account to company account
We are an Indian-based company that initially operated as freelancers on Upwork. Upwork does not have a physical presence in India. Between 2009 and 2017, there were two of us working as freelancers. Subsequently, we made the decision to establish our own company. In 2018, we officially founded our company in India. From that point onwards, all remittances from our freelance accounts were directed into our company's bank account, and we ceased withdrawing funds to our personal accounts.
The transaction history on Upwork can serve as evidence of this practice. We possess Foreign Inward Remittance Certificate (FIRC) documentation for all these transactions. Additionally, we have linked our company's Permanent Account Number (PAN) to both of our freelancer accounts. This ensures that any funds received in our individual freelancer accounts are accurately reflected in the quarterly TDS filings of our company account. We use our company account to issue employee salaries, and currently, our company employs only three individuals.
To summarize, any income obtained through freelancing individual accounts is promptly transferred to our company account, and all financial transactions are conducted through this account. We have diligently filed and paid our Income Tax (IT) for all applicable years. Moreover, we have paid the Goods and Services Tax (GST) on any purchases that require it, and our financial records remain clear.
At present, we seek guidance on whether there are any potential issues or precautions we should take to avoid any future complications so we do not have issues with GST or IT.
Asked 1 year ago in GST
Hi Rohit,
Thanks for your quick response.
-The amount is directly deposited to company account no individuals accounts are involved. So its a direct upwork to company account transfer.
-The FIRC has name of company and company bank details no individuals accounts are involved.
This is happening since we started the company, no individual account name or transaction is involved in any means. All deposits are between upwork and company account ONLY.
Please let us know if we need to make any updates.
Asked 1 year ago
