Hello Friends,
I tried to get in touch with Airbnb about this issue, but it's been a while and no one has responded. So I thought I would try and see if any other hosts have found any solution for it.
Issue is regarding the TDS for Indian hosts. No, this is NOT about TDS that Airbnb deducts before releasing your payout. The issue is the other way around.
I am NOT taking into account the GST (Goods & Services Tax) related complexity to keep it simple for the issue at hand.
Let's take following example:
Booking Value: Rs. 20,000/- (NOT including the guest service fee)
Host Service Fee @ 3%: Rs. 600/
TDS (Airbnb cuts) @ 5% : Rs. 1,000/-
Net Payout : Rs. 18,400/-
However, the Host Service Fee is actually what we - as hosts - pay to Airbnb. So, they MUST issue an invoice for this fee (including GST, but keeping it out of purview for now).
Issue is, that if Host's payout to Airbnb for the Host Service Fee for the year is more than Rs. 20,000/-, host is required to deduct 5% TDS (rate applicable for commissions and due to COVID, it is revised to 3.75%) on these fees. But so far we have not found a way to deduct this TDS from Airbnb's Host Service Fee.
Please let us know if anyone has successfully completed this compliance in India.
Thank you,
Trupti