You are on page 1of 5



ARCHITECT is a person who plans, designs, and oversees the construction of buildings. To
practice architecture means to provide services in connection with the design and construction of
buildings and the space within the site surrounding the buildings, that have as their principal purpose
human occupancy or use. Etymologically, architect derives from the Latin architectus, which derives from
the Greek (arkhi-, chief + tekton, builder), i.e., chief builder.

Setting Up A Practice
 Establishing firm
 Space
 Capital investment
 Sources of funds
 Organization
 Income Tax

Establishing A Firm

Principles :

 Proprietorship - a licensed architect who is the sole proprietor of the firm.

 Partnership- only with Architects - who shares an ownership interest with the other architects in
the firm (either as a partner in a partnership, or as a shareholder in a corporation).
 Define share
 Registration of firm
 No Private Limited or Public Limited company

Space :
 Depends on size of an organization
 7 to 10 sq mt per person
 Usual spaces
•Meeting / conference room
•Chamber for principals
•Printing section
•Toilet, Pantry

Capital Investment :
 Immovable
•Built up space
 Movable
•Computer, printer, plotter
•Phone, fax
•Interior, furniture

Sources Of Funds

 Initial Capital
 Own money
 Soft loan
 Bank loan
 Subsequent requirements
 Earn & invest

Organization :
 Small firms with less than 5 people usually have no formal organizational structure, depending on
the personal relationships of the principals and employees to organize the work.
 Medium-sized firms with 5 to 50 employees are often organized departmentally in departments
such as design, production, business development, and construction administration.
 Large firms of over 50 people may be organized departmentally, regionally, or in studios
specializing in project types.
 Outsourcing work Advances in information technology have made it possible for some firms to
open offices or establish alliances with other firms in different parts of the world. This makes it
possible for some portions of the work to be performed in the US or UK and other portions in
locations such as India or The Philippines, for example. In addition to utilizing lower-cost, high skill
professionals in Asian countries, it also enables some firms to work, in effect, two or three shifts
due to time differences.

What is the taxable service in case of an Architect?

In case of an Architect, taxable service is a service provided, to a client, by him in his professional
capacity in any manner. The nature and scope of the services rendered by architects are well delineated
under the provisions of the Architects Act. Broadly, the work of an architect starts from providing
appropriate advice keeping in view the requirements of the client at the preliminary stage of initial
sketches, specifications and drawing of plans, and consists of providing detailed drawings, approval of
the drawings from the concerned authorities, supervision at each stage of construction, and till the point
when the completion certificate is obtained from the authorities.

What is the value of taxable service in case of an Architect?

Value of the taxable service in relation to the service provided by an architect to a client, is the gross
amount charged by such architect from the client for services rendered in professional capacity in any
Income Tax
o Registration
 Firm to have PAN no.
 Architect to have PAN no.
 Employees to have PAN no.
o TDS (tax deducted at source) by
 Client, while making payment to the Architect
 Deposited with IT Department
 Certificate issued to the Architect

TDS (tax deducted at source)

o By Client
 while making payment to the Architect
 Deposited with IT Dept
 Certificate issued to the Architect
o By Architect
 While making payment to Consultants, Employees
 Deposited with IT Dept
 Certificate issued to the respective person

Standard of professional conduct /self discipline requires of an architect

• Ensure that his professional activities do not conflict with his general responsibility to contribute to
the quality of the environment and future welfare of society.

• Apply his skill to the creative, responsible and economic development of his country.

• Provide professional services of a high standard, to the best of his ability.

• Act with fairness and impartiality when administering a building contacts.

• Promote the advancement of architecture, standards of architectural education, research, training

and practice.

• Maintain a high standard of integrity.

• Conduct himself in a manner which is not derogatory to his professional character, nor likely to
lessen the confidence of the public in the profession, nor bring architects into disrepute.

• Observe and uphold the council's conditions of engagement and scale of charges
• Not prepare designs in competition with other architects for a client without payment or for a
reduced fee, (except in a competition conducted in accordance with the architectural competition
guidelines approved by the council).

• Not attempt to obtain, offer to undertake or accept a commission for which he knows another
architect has been selected or employed until he has evidence that the selection, employment or
agreement has been terminated and he has given the previous architect written notice that he is so
doing .

Architect shall not advertise his professional services nor shall he allow his name to be
included in advertisement or to be used for publicity purposes save the following
exceptions :-

(a) a notice of change of address may be published on three occasions and correspondents may be
informed by post

(b) an architect may exhibit his name outside his office and on a building, either under construction or
completed, for which he is or was an architect, provided the lettering does not exceed 10 cm. In

(c) Advertisements including the name and address of an architect may be published in connection with
calling of tenders, staff requirements and similar matters.

(d) Architect may allow his name to be associated with illustrations and descriptions of his work in the
press or other public media but he shall not give or accept any consideration for such appearances.

(e) He may allow his name to appear in advertisements inserted in the press by suppliers or
manufacturers of materials used in a building he has designed, provided his name is included in an
unostentatious manner and he does not accept any consideration for its use,

(f) Architect may allow his name to appear in brochure prepared by Clients for the purpose of
advertising or promoting projects for which he has been commissioned,

(g) may produce or publish brochures, pamphlets describing his experience and capabilities for
distribution to those potential Clients whom he can identify by name and position.

(h) may allow his name to appear in the classified columns of the trade / professional directory and/or
telephone directory/ website.