Tax Collected at Source: Difference between revisions

Latest revision as of 23:54, 21 December 2024

Tax Collected at Source
Type:	Government Mechanism
Parent organization:	Internal Revenue Service (IRS), U.S. Department of the Treasury; State Revenue Departments
Employees:	Not applicable (Part of broader IRS and state tax authorities staff)
Executive:	Not applicable (System administered by IRS and state revenue departments)
Budget:	Not applicable (Integrated within federal and state government fiscal policies)
Address:	1111 Constitution Ave NW, Washington, DC 20024 (IRS Headquarters)
Website:	https://www.irs.gov
Creation Legislation:	Not specifically legislated but operates under general tax collection laws
Wikipedia:	Tax Collected at Source

Tax Collected at Source

This map created from a Cargo query (Purge)

Mission
To collect tax from buyers at the source of certain transactions to ensure compliance with tax laws, particularly for sales of specific goods or services, thereby broadening the tax base and curbing evasion.

Services
Tax Collection; Compliance Monitoring

Regulations

Tax Collected at Source (TCS) in the United States refers to a tax collection mechanism where tax is collected by sellers from buyers at the time of sale for certain transactions, similar in concept to withholding taxes but applied to specific goods or services. It's less formally structured compared to the Indian version but serves a similar purpose in tax compliance.

Official Site

Mission

The mission of TCS in the U.S. is to ensure tax revenue is collected at the earliest point of transaction on specific goods or services, thereby increasing compliance, reducing evasion, and providing immediate revenue to the government.

Parent organization

TCS activities are overseen by the Internal Revenue Service (IRS) under the U.S. Department of the Treasury for federal taxes, and by various state revenue departments for state-level taxes.

Legislation

There isn't a specific piece of legislation named for TCS in the U.S.; it's part of the broader tax collection framework under the Internal Revenue Code and various state tax codes.

Partners

- Sellers of specified goods where TCS applies (e.g., certain motor vehicles, scrap). - State and local tax authorities where applicable.

Number of employees

Not applicable as TCS is part of the existing operations of tax collection agencies without dedicated staff.

Organization structure

Administered through the IRS for federal implications and state revenue departments for state-level taxes.
Implementation involves businesses and sellers during the transaction process.

List of programs

Collection of sales tax or use tax at the point of sale for specific transactions.
Reporting and remittance of collected taxes to federal or state governments.

Last total enacted budget

TCS does not have a separate budget; it's part of the overall budget for tax collection operations by the IRS and state revenue departments.

Leader

Not applicable as TCS is a mechanism within existing tax administration structures.

Services provided

TCS in the U.S. involves collecting taxes on certain transactions at the point of sale or transfer. This can include taxes on luxury items, certain vehicles, or other specified goods, ensuring that the tax is paid at the earliest possible stage, which helps in compliance and enforcement.

Regulations overseen

TCS functions under the regulations of the IRS and state tax laws, concerning the collection, reporting, and remittance of taxes. It's not about overseeing regulations but complying with existing tax laws.

Headquarters address

1111 Constitution Ave NW, Washington, DC 20024 (IRS Headquarters)

Website

https://www.irs.gov

Wikipedia article

There is no specific Wikipedia article for U.S. TCS, but it's referenced in contexts related to U.S. taxation practices.

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@@ Line 2: / Line 2: @@
 |OrganizationName=Tax Collected at Source
 |OrganizationType=Government Mechanism
-|Mission=To enhance tax compliance by collecting tax at the point of sale on specified transactions, ensuring revenue is captured at the earliest possible stage. TCS aims to curb tax evasion and broaden the tax base.
+|Mission=To collect tax from buyers at the source of certain transactions to ensure compliance with tax laws, particularly for sales of specific goods or services, thereby broadening the tax base and curbing evasion.
-|OrganizationExecutive=Not applicable (System administered by Indian Income Tax Department)
+|OrganizationExecutive=Not applicable (System administered by IRS and state revenue departments)
-|Employees=Not applicable (Part of broader Income Tax Department staff)
+|Employees=Not applicable (Part of broader IRS and state tax authorities staff)
-|Budget=Not applicable (Integrated within the Indian government's fiscal policy)
+|Budget=Not applicable (Integrated within federal and state government fiscal policies)
-|Website=https://www.incometaxindia.gov.in
+|Website=https://www.irs.gov
 |Services=Tax Collection; Compliance Monitoring
-|ParentOrganization=Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, Government of India
+|ParentOrganization=Internal Revenue Service (IRS), U.S. Department of the Treasury; State Revenue Departments
-|CreationLegislation=Section 206C of the Income Tax Act, 1961
+|CreationLegislation=Not specifically legislated but operates under general tax collection laws
 |Regulations=
-|HeadquartersLocation=28.6139° N, 77.2090° E
+|HeadquartersLocation=38.8977° N, 77.0365° W
-|HeadquartersAddress=A.R.A. Centre, E-2, Jhandewalan Extension, New Delhi, 110055
+|HeadquartersAddress=1111 Constitution Ave NW, Washington, DC 20024 (IRS Headquarters)
 }}
-'''Tax Collected at Source (TCS)''' is a method implemented by the Indian government to collect tax directly from sellers at the source during certain transactions, as mandated by the Income Tax Act, 1961. It's part of the strategy to ensure tax is collected on high-value or specific transactions to prevent tax evasion.
+'''Tax Collected at Source (TCS)''' in the United States refers to a tax collection mechanism where tax is collected by sellers from buyers at the time of sale for certain transactions, similar in concept to withholding taxes but applied to specific goods or services. It's less formally structured compared to the Indian version but serves a similar purpose in tax compliance.
-{{Official URL (simple)|url=https://www.incometaxindia.gov.in}}
+{{Official URL (simple)|url=https://www.irs.gov}}
 == Mission ==
-The mission of TCS is to enhance government revenue collection by ensuring taxes are collected at the initial stage of transactions involving specific goods or services. It helps in tracking high-value transactions, reducing tax evasion, and ensuring that the tax system captures revenue from a wider range of economic activities.
+The mission of TCS in the U.S. is to ensure tax revenue is collected at the earliest point of transaction on specific goods or services, thereby increasing compliance, reducing evasion, and providing immediate revenue to the government.
 == Parent organization ==
-TCS is administered by the [https://www.incometaxindia.gov.in Central Board of Direct Taxes (CBDT)] under the Department of Revenue, which falls within the [https://www.finmin.nic.in Ministry of Finance, Government of India].
+TCS activities are overseen by the [https://www.irs.gov Internal Revenue Service (IRS)] under the U.S. Department of the Treasury for federal taxes, and by various state revenue departments for state-level taxes.
 == Legislation ==
-TCS is governed by [Section 206C of the Income Tax Act, 1961](https://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx), which specifies the goods, services, and conditions under which TCS must be collected.
+There isn't a specific piece of legislation named for TCS in the U.S.; it's part of the broader tax collection framework under the Internal Revenue Code and various state tax codes.
 == Partners ==
-- Various sellers and businesses across India who are required to collect TCS.
+- Sellers of specified goods where TCS applies (e.g., certain motor vehicles, scrap).
-- Banks and financial institutions for depositing collected TCS.
+- State and local tax authorities where applicable.
 == Number of employees ==
-TCS itself does not have specific employees; it's managed by the staff of the Income Tax Department.
+Not applicable as TCS is part of the existing operations of tax collection agencies without dedicated staff.
 == Organization structure ==
-* Administered by the Income Tax Department through regional and local tax offices.
+* Administered through the IRS for federal implications and state revenue departments for state-level taxes.
-* Implementation is decentralized, involving tax collectors (sellers) at the transaction level.
+* Implementation involves businesses and sellers during the transaction process.
 == List of programs ==
-* Collection of TCS on specified goods like vehicles, jewelry, and overseas tour packages.
+* Collection of sales tax or use tax at the point of sale for specific transactions.
-* Reporting of TCS through quarterly returns (Form 27EQ).
+* Reporting and remittance of collected taxes to federal or state governments.
-* Issuance of TCS certificates (Form 27D).
 == Last total enacted budget ==
-TCS does not have a separate budget; it's part of the broader fiscal policy and revenue collection strategy of the government.
+TCS does not have a separate budget; it's part of the overall budget for tax collection operations by the IRS and state revenue departments.
 == Leader ==
-Not applicable as TCS is a mechanism rather than an organization with a leader.
+Not applicable as TCS is a mechanism within existing tax administration structures.
 == Services provided ==
-TCS services include the collection of tax at source from buyers by sellers on specified transactions, depositing this tax to government accounts, and providing TCS certificates to buyers for tax credit. It aims at simplifying tax collection, ensuring compliance, and reducing the administrative burden on both the government and taxpayers.
+TCS in the U.S. involves collecting taxes on certain transactions at the point of sale or transfer. This can include taxes on luxury items, certain vehicles, or other specified goods, ensuring that the tax is paid at the earliest possible stage, which helps in compliance and enforcement.
 == Regulations overseen ==
-TCS is not about overseeing regulations but complying with them. It operates under the regulations set by the Income Tax Act, ensuring that sellers collect and deposit tax correctly as per the law.
+TCS functions under the regulations of the IRS and state tax laws, concerning the collection, reporting, and remittance of taxes. It's not about overseeing regulations but complying with existing tax laws.
 == Headquarters address ==
-A.R.A. Centre, E-2, Jhandewalan Extension, New Delhi, 110055 (Address of the CBDT)
+Constitution Ave NW, Washington, DC 20024 (IRS Headquarters)
 == Website ==
-https://www.incometaxindia.gov.in
+https://www.irs.gov
 == Wikipedia article ==
-There is no dedicated Wikipedia article for Tax Collected at Source, but it's mentioned in contexts related to Indian taxation systems.
+There is no specific Wikipedia article for U.S. TCS, but it's referenced in contexts related to U.S. taxation practices.
 <references>
-<ref>https://www.incometaxindia.gov.in</ref>
+<ref>https://www.irs.gov</ref>
-<ref>https://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx</ref>
+<ref>https://www.irs.gov/individuals/international-taxpayers/tax-withholding</ref>
-<ref>https://www.cleartax.in/s/tcs</ref>
+<ref>https://taxfoundation.org/state-sales-taxes/</ref>
 </references>