Airbnb Tax Deducted at Source (TDS) for India

[Trupti5]

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

[Mrs--Mohini0]

We are also facing exactly the same issue, but unfortunately haven't yet found a way even after chatting with AirBnB support and also after calling them. I will give an update here if we find a solution. 

Thanks for posting about this topic.

[Manav11]

We are also facing the same issue. If any update by anyone would be helpful. 

For the commission charged to us we are not getting any bills from Airbnb? Why?

Our's payout to Airbnb for the Service Fee (Commission) for the year is more than Rs. 20,000/-, then we are required to deduct 5% TDS (rate applicable for commissions) on these fees.

How do we do that?

[Nikhil82]

Same issue with me. Tried contacting support and the executive can't even understand the issue. Please update if anyone finds a solution. 

[Paula]

Hi @Nikhil82,

I just wanted to check in and see if you were able to sort out the situation you were facing. Additionally, it could be a great idea for you to join a Local Host Club near your area so you can connect with other hosts. Here's the link for you to explore.

Paula

[Trupti5]

Hello Paula, 

I understand that airbnb is doing wonderful job for host like us. Really appreciate airbnb team efforts and systems. Wonderful Opportunity for host and guests in India and across the world.  

This TDS thing is a violation for all host who pay more than 20,000 fees to airbnb in India.  Please take it up to your accounts team. it needs to be sorted. 

-Thank you

Trupti Shah

Arbor Park Owner 

[Helen744]

@Trupti5 host service fee is never paid to you and therefore is never subject to being added in any way to your personal taxes. Airbnb is not your employer as such ,they  are providing a service, they charge the guest  and you, and take a fee  Before, paying you, and as it is their income ,then they pay tax on it ,not you.You will see this tax that is paid  in the country of origin by Airbnb but it has no relation to you.... H

[Team139]

Hi - Can you please explain this with examples. The GST calculation is very confusing. If you could take a sample dummy transaction and explain it - it would really help us. Thanks in Advance