Unit 1

UNIT 1
INTRODUCTION TO
ARCHITECTURAL
PROFESSION
ARA 91 PROFESSIONAL PRACTICE 1
PROFESSIONAL PRACTICE
Unit 1 Introduction to architectural profession Importance of
architectural profession Roles of architect in society
Alternatives open on entering the profession Registration of
architects Architects office and management
Unit 2 Professional ethics and code of conduct Role of IIA
Architects Act 1972 Roles and Functions of COA Importance of
ethics in professional practice code of conduct for architects as
per COA
Unit 3 Architects services & scale of fees Mode of engaging
an architect comprehensive services, partial and specialized
services scope of work of an architect/schedule of services
COA norms on fees, T&C of engagement
Unit 4 Architectural Competitions Importance of architectural
competitions types of competitions COA guidelines
Unit 5 Legal Aspects & Legislation Copyrights, Patenting,
Easements and CMDA, DCR and Panchayat Rules
INTRODUCTION TO THE
ARCHITECTURAL PROFESSION
1.1 Importance of architectural profession
1.2 Role of architects in society Alternatives
open on entering the profession
1.3 Architects Office and its management
Location
Organization Structure
Responsibility towards employees, consultants and
associates
Elementary accounts
Tax Liabilities
INTRODUCTION TO THE
To start off the course, lets talk something
informal
Everybrick wants to be something!!!
Whats the best thing thats ever happened to you??
INTRODUCTION TO THE
IMPORTANCE OF ARCHITECTURAL PROFESSION
The mother art is

architecture. Without an
architecture of our own, we
have no soul of our own
civilization
- F L Wright
INTRODUCTION TO THE
Develop the students understanding of professional practice as it
relates to the tasks of design, programming, site analysis and
budgeting
Introduce the students to the role of architect in developing
comprehensive project documentation, detailing, specifications,
drawing formats and organization
Introduce the students to the role of architect in project design
and construction, administration of the construction contract
and in the relationship with others involved with the project
Develop the students understanding of role and responsibilities
of the architect in professional practice
Introduce the students to the legal aspects of PP, establishment
of architectural office and professional licensing procedures
Expand the students knowledge components regarding human
needs and programming
INTRODUCTION TO THE
Who is an architect???
Plans, designs and oversees the construction of
buildings
Provide services in connection with the design and
construction of buildings and the space within the site
surrounding the building that have human occupancy
or use
PROFESSIONALLY architects decision affect public
safety
Architect MUST undergo specialized training consisting
of advanced education and a practicum for practical
experience to earn a license to practice architecture
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What is happening in todays world in an architectural
practice??
A Report by Think Tank Building Futures:
Global population growth from 2000 to 2050 will rise 46% and 70% of
the population will live in urban areas
As of 2008, demand for arch services has declined 40%
Only 50% of the arch firms interviewed have a business plan
Areas of the profession predicted to remain relatively stable in 2025:
small local general practice, international starchitects, specialist
niche practices, traditional regional delivery driven practices
Emerging areas of practice: developing economies, global inter-
disciplinary consultancies, BOOT designers, sub-contractors &
specialists, design houses and creative agencies
Areas of practice most at risk: medium sized firms of 25 to 150
people and small metro boutique practices
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LETS DISCUSS.
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The Environment
Health
Culture
Identity
The BOTTOM LINE
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TheEnvironment Growth of global population
urbanization massive challenge for humanity and
environment game changing component of
sustainability - HOW & WHERE WE HOUSE OUR
POPULATION??
Well designed city reduce the need for long every day
travel
Well designed buildings provide energy instead of
consuming it
Sustainable buildings WE CAN KEEP OPTIONS FOR THE
FUTURE
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Health Arch & UD has direct impact on our health in
several ways emphasis physical activity in design
harmonious workspace (allowing people to open windows,
close blinds and adjust lighting) eliminate workspace
hazards (replace ceiling mounted bulbs with wall mounted)
Culture Arch is an expression of a societys culture
Identity design is perceived and regarded worldwide
comes down to the people, physical environment and
culture How?? (Sydney Opera House) Cities with
positive identity has good benefits
THE BOTTOMLINE Environmental sustainability, improved
health and a sense of culture and identity all have direct
benefits to ones economy
ARCHITECTURE IS FOR EVERYONE!!!
INTRODUCTION TO THE
ROLE OF ARCHITECTS IN A SOCIETY
Architects see the big picture
Architects are specially educated to help you define
what you want to build, present options you might
never have considered, and help you get the most
for your valuable investment
Dont just design four walls and roof create total
environments, both interiors and exteriors, that are
functional and exciting places in which to work and
live
Architects solve problems creatively
Architects are trained problem solvers (space
enhancement & budget constraints)
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Architects help you get the most from the construction
budget
Architects can reduce buildings costs, reduce homes
energy needs and increase the future resale value thru
good design
Architects make life easier
Building is a long process that is often messy and
disruptive, particularly if you're living in the space while
it's under construction. Your architect represents you,
not the contractors. Your architect looks out for your
interests and smoothes the process, helps find qualified
construction contractors, and visits the worksite to help
protect you against work that's not according to plan...
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A: Your grandfather looks healthy. Who
treated his illness?
B: Oh ya, Dr. Smith is a great doctor. He
knows his job. He cured my grandfather like
never before.
A: Your office building looks so elegant. Who
was the designer of this building?
B: Designer? Well, ummm... hmmm....
well,..... actually, I don't know.
(DONT CONFINE YOURSELF WITHIN FOUR WALLS
OF ART, ARCHITECTURE, AESTHETICS & ETHICS)
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...By participating in public life, architects
have the opportunity to improve the built
environment and the lives of those experience
it. In this capacity, architects increase their
exposure, make new contacts, learn how things
get done in the public arena, and gain
knowledge that can be helpful in serving the
client... (William M Polk, AIA)
INTRODUCTION TO THE
Types of Architecture
Everyday Architecture (Bread & Butter Projects)
houses, shops, schools etc which comprises 95% of
building stock of the nation
Architecture for art institutions, religious
buildings, airports etc which comprises 5% of the
total stock of the building industry
95% architects want to work for 5% of buildings
whereas only 5% architects get the opportunity to
work for architecture for art projects
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Architects are admittedly a strange bee. Most
creative people are a bit strange at times.
Architects seem to thrive for a change. One
decade, they go in one direction; next decade,
they do a complete turnaround and go in the
opposite direction. This is not all bad. They are
searching for new and meaningful forms, more
economical solutions to buildings, building that
functions better and timely. Sometimes architect
has to go back to pick up good things that were
left behind. Thats human (William Wayne,
Architecture and You)
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Provide advice on the best ways the client can achieve
their plans within the constraints set by building
regulations and planning permission
Shall take the correct design brief and should be able to
see the big picture. Architects shall look beyond the
immediate requirements to design flexible buildings that
will adapt to the changing needs of the project
Shall try to involve themselves at the earliest planning
stage so that they gain more opportunities to understand
the project, develop creative solutions and propose ways
to reduce costs
Shall include coordinating a team of specialized consultants
Shall create the total environment (interior + exterior)
which are pleasing and functional
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Shall use innovation and management of new
technologies to offer client a benefit of
advancement
Shall increase efficiency and productivity thru
continuous learning & training to keep pace with
time and survive in a competitive market
Globalization is demanding QES in all aspects of
building process and architect shall be updated
Shall manage and work with higher efficiency using
BIM
Shall not only focus on their design skills but also
shall learn the management
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ROLE OF ARCHITECTS IN A SOCIETY - Contribution
Urbanization & Cities
Poor management of cities leads to chaos with poor
infrastructure, confusion and damaging environmental impact
Anticipate still more danger and chaos to our cities due to
population explosion
Architects can become public advocate and make a
significant difference individually or thru professional bodies
Policies can be viewed from a different perspective and
technical suggestions can be made for public interest during
the policy making process
Be sensitive and conscious in your practice and participate in
all the available opportunities to contribute in making our
cities more habitable and beautiful
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Sustainability
Construction biggest consumer of natural energy and
resources
Society EXPECTS architects to understand, innovate and
take initiative in developing & recommending appropriate
materials and techniques which will optimize resources
and help our countries to be more sustainable
Community Service
Participate in community activities and public service
thru volunteering to several public organizations, NGO
Apart from benefits to the community, the architect also
enhances his image and builds the goodwill for the
profession
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Disaster & Emergency Architecture
Own responsibility to rehabilitate and rebuild for people suffer
during a natural disaster
Architects specialized training and situational problem solving
skills can contribute immensely and requires initiative and
team work
Architects contribution as government employee
Practice is controlled by government via DCR, zoning,
regulations etc
Architect, as a public servant, has a very influential role in
making town planning policies, advising government in framing
policies for public buildings, rules, regulation enforcement etc.
Architects technical and admin skill can make him/her a
distinct coordinator between the public & government
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Non-Stop Training
Architects education does not stop with graduation
Demands continuous professional training & development
Education program must make architects aware about the
balance they need to maintain between their commercial
goals and their social responsibility
Technology today changes almost as

quickly as weather (PWC)
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INTRODUCTION TO THE
INTRODUCTION TO THE
Over 500 Indian immigrants and 382 Nepalese nationals
have died in the country since it won the rights to host
the soccer tournament
"It's not my duty as an architect to look at it, I cannot
do anything about it because I have no power to do
anything about it. I think it's a problem anywhere in
the world. But, as I said, I think there are
discrepancies all over the world.
"Yes, but I'm more concerned about the deaths in Iraq
as well, so what do I do about that? I'm not taking it
lightly but I think it's for the government to look to
take care of."
WHAT ARE YOUR VIEWS ON IT???
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Architects have a responsibility to society Richard Rogers

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ALTERNATIVES OPEN ON ENTERING THE PRO
What are the various other professions that an
architect have as alternative??
Construction/Project Manager
Read/understand designs, selection of vendors,
materials, architects ability to understand complex
building construction
Urban Planners
Mixed use development, land use reports, population,
feasibility reports, understand implications of a project
to community, max a particular space
Graphic Designers
Visuals to communicate, advertising, branding
Retail, DMS/IMS, YPP, Business Management, REM, FM etc
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS
Any person desirous of practicing as an Architect in India
is required to be registered with the Council of Architecture
The Central Government provides a Register of Architects in
India
COA prepares and maintains the register in accordance with
the provisions of Architects Act 1972
Register include the following particulars:
Full name with the date of birth, nationality and the residential
address of the architect
Architects qualification for registration and the date on which the
qualification was obtained and the authority which conferred it
Date of the architects first submission to the Register
Architects professional address
Further particulars as prescribed by the rules
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS Procedure
Application for registration is addressed to the Registrar
of the Council
The application along with the prescribed fee and the
necessary documents should be submitted personally at
the office of the Council or sent by post to The
Registrar, Council of Architecture, India Habitat Centre,
Core 6-A First floor, Lodhi Road, New Delhi 110 003
Documents to be submitted are:
Application form in the prescribed format, duly filled in and
signed by the applicant, along with two recent passport size
photographs duly signed, with name mentioned at the back
A copy of the date of birth certificate attested by either a
Gazetted Officer or Notary Public/Oath Commissioner
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The recognised architectural qualification certificate on
the basis of which registration is sought i.e. 5-year
B.Arch. Degree or 5-year Diploma in Architecture or 5-
year Government Diploma in Architecture or Membership
of I.I.A. Certificate (as the case may be), in original, for
verification and return by Registered Post, along with a
copy of the same duly attested by either a Gazetted
Officer or Notary Public/Oath Commissioner
The recognised architectural qualifications (Indian and
Foreign) are listed in the COA SCHEDULE
The copies of mark sheets for all the semesters/years of
the recognised architectural qualification duly attested by
a Gazetted Officer or Notary Public/Oath Commissioner
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A copy of the Marriage Certificate duly attested by either a Gazetted
Officer or Notary Public/Oath Commissioner towards change of name
consequent upon marriage. However, in case of change of name due to
reasons other than marriage, only a copy of the Gazette Notification,
duly attested by either a Gazetted Officer or Notary Public/Oath
Commissioner, will be accepted. A duly attested copy mark sheet of
10+2 or equivalent examination with 50% marks in aggregate
A demand draft for Rs 600/- (Non-refundable) drawn in favour of
Council of Architecture, payable at Delhi/New Delhi towards
registration fee. There is also an option of availing one-time payment
at the time of registration by paying Rs 6,600/- vide demand draft
(i.e. registration fee of Rs.600/- and one time payment of Rs.6,000/-)
which is subject to submission of the final Degree/Diploma, in original,
along with an attested copy of the same
A self-addressed envelope of size 14 x 10 for sending the
certificate of registration by Registered Post
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If the Registrar is of the opinion that the applicant
is entitled to be registered, then he shall enter the
name of the applicant in the Register and issue a
Certificate of Registration
Any person whose application for registration is
rejected by the Registrar, can within three months
of the date of rejection, appeal to the Council
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS
Only a registered Architect or a registered firm of
Architects can use the title and style of Architect
Every time an Architect signs an agreement with the
client, he is supposed to quote his Registration
Number
If any person misuses the title and style of Architect,
such acts tantamount to committing a criminal
offence, which is punishable under section 36 or 37 (2)
of the Architects Act, 1972, on first conviction with
fine of five hundred rupees, and on any subsequent
conviction with imprisonment which may extend to six
months or with a fine not exceeding one thousand
rupees
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS Why???
Itis very important that every qualified Architect,
desirous of carrying on the profession of
Architect, be registered with the Council of
Architecture because any reference in law to an
Architect, shall be deemed to be a reference to an
Architect registered under the Act
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS Entitlement
Theregistration with the Council of Architecture
entitles:
A person to practice the profession of Architecture,
provided he holds a Certificate of Registration with up-to-
date renewals;
A person to use the title and style of Architect. The title
and style of Architect can also be used by a firm of
Architects, of which all partners are registered with COA.
Limited Companies, Private/Public Companies, societies
and other juridical persons are not entitled to use the
title and style of Architect nor are they entitled to
practice the profession of Architecture.
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REGISTRATION OF ARCHITECTS Relevance
Onentry in the Register, the Registrar issues a
Certificate of registration, in which the Council of
Architectures Registration Number is mentioned.
This Registration Number has to be quoted by the
Architect, when signing on an Agreement or on any
documents related to the project for which the
Architect has been signed
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REGISTRATION OF ARCHITECTS Not-Regd.
An Architect may not be registered in rare cases, if he has not
applied for registration or if he has not paid the registration fee or
renewed the registration
However in most cases, an Architect is not registered because he
does not hold a recognized qualification, or because he has not
successfully completed the Architecture course, or because his
name has been removed from the register for some act of
professional misconduct or for some other reasons such as:
If a request has been received to that effect
If the Architect has died since the last publication of the Register
If the Architects name had been entered by error or on account of
misrepresentation or suppression of material fact
If the Architect has been convicted of any offence which involves moral
turpitude
If the Architect is an undischarged solvent
If the Architect has been adjudged by a competent court to be of unsound
mind
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS False Claim
Many times pseudo architects operate as if they are
real Architects and dupe the general public
The only way you can prevent such malpractices, is
by insisting that the Architect gives you his
Registration Number
If any person whose name is not entered in the
Register but falsely represents that it is entered, or
uses in connection with his name or title, any words
to suggest that he is registered, such acts tantamount
to committing a criminal offence, and is punishable
under section 36 or 37 (2) of the Architects Act, 1972,
with a fine of one thousand rupees
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS Pseudo Arch
Anybody who confirms that a person pretending to
be an Architect is not registered with the Council
of Architecture, can lodge a police complaint
against the pseudo Architect and complain to the
Council as well
Before this, the complainant must verify with the
Council if the said Architect is registered or not.
One can complain to the COA in this Complaint
Form
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS - Questions
Canan architect have an additional qualification
entered in the Register of Architects??
An Architect can have any additional recognized
qualification, entered in the Register, on payment of
additional qualification fee of Rs.100/- (per qualification)
provided such a qualification is obtained subsequent to
registration as an Architect
Only Architectural Qualifications included in the schedule
of qualifications appended to the Architects Act, 1972,
can be entered on the certificate of registration
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How and when the registration with COA is renewed???
A renewal fee of Rs 600/- for the Current year, should be paid
annually to the Council before the first day of April, of the
year to which it relates. An application for renewal along
with the prescribed fee and the necessary documents should
be submitted personally at the office of the Council or sent
by post to The Registrar, Council of Architecture, India
Habitat Centre, Core 6-AFirst floor, Lodhi Road, New Delhi
110 003 with the following docs:
A cash/demand draft in favour of the Council of
Architecture payable at New Delhi towards renewal
A one time payment of Rs 6600/- is also accepted which is
subject to submission of the final Degree/Diploma, in
original, for verification
The Certificate of registration in original.
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The recognised architectural qualification certificate in
original, for verification and return by Registered Post,
along with a copy of the same duly attested by either a
Gazetted Officer or Notary Public/Oath Commissioner
The recognised architectural qualifications (Indian and
Foreign) as listed in the COA SCHEDULE
Any additional recognized architectural qualification
certificates in original, for verification and return by
Registered Post, along with a copy of the same duly
attested by either a Gazetted Officer or Notary
Public/Oath Commissioner
The Certificate of registration in original
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Any change in address should be notified to the council
and the necessary attested copy of the proof of address
In case there is a change in the surname consequent to
marriage, a copy of the Marriage Certificate duly
attested by either a Gazetted Officer or Notary
Public/Oath Commissioner
However, in case of change of name due to reasons other
than marriage, only a copy of the Gazette Notification
duly attested by either a Gazetted Officer or Notary
Public/Oath Commissioner, will be accepted
A self-addressed envelope of size 14 x 10 for sending
the certificate of registration by Registered Post
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REGISTRATION OF ARCHITECTS - Fees
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On payment of the renewal fee, the Registrar shall,
in such manner as may be prescribed by rules,
endorse the certificate of registration accordingly
and return it along with the original architectural
qualification certificate
In case the renewal fee is not paid before the due
date, the Registrar removes the name of the
defaulter from the Register
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS Questions
Why is an architects name removed from the
register of COA???
A person whose name has been removed from the Register
or where such person is dead, his legal representative
should surrender his Certificate of Registration to the
Registrar, and the name so removed will be published in
the Official Gazette.
If any person whose name has been removed from the
Register fails to surrender his Certificate of Registration,
he shall be punishable with fine of one hundred rupees,
and, in case of continued failure, with an additional fine
of ten rupees for each day thereafter
INTRODUCTION TO THE
REGISTRATION OF ARCHITECTS Questions
How is an architects name restored to the register of COA???
The Council may, for reasons appearing to it to be sufficient and
subject to the approval of the Central Government, order that the
name of the person removed from the Register can be restored upon
payment of a prescribed fee. Restoration Fee of Rs.1000/- shall be
payable w.e.f. 1st April of the year
How can an architect get a duplicate certificate of
registration in case the original is lost or destroyed???
If the Registrar is satisfied that a Certificate of Registration has
been lost or destroyed, the Registrar will issue a duplicate
Certificate of Registration, upon payment of a prescribed fee
When is the register get printed???
After the first day of April every year, the Registrar prints copies of
the Register, which are then available to persons applying for a
copy, on payment of the prescribed fee
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ARCHITECTS OFFICE AND MANAGEMENT
Location
Responsibility towards employees
Responsibility towards consultants and associates
Elementary Accounts
Tax Liabilities
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Location
Firstthing to figure out to have an establishment
Where and why??
What the particular city has to offer new clients??
How about the accessibility??
Easy to reach location for the clients
Leasing or Buying depending on the capital
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A management tool to leverage the talents and
skills of your people, promote growth and
profitability and meet the needs of the clients and
markets that you serve
Two criteria to be fulfilled.
How your company orients itself to its clients and its work
Who reports to whom within the company
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Organization Structure Affecting Operations
The effectiveness with which the firm brings in
work
The focus it brings to clients
The efficiency with which it executes the work and
the profitability
The level of collaboration, career paths and
employee satisfaction within the firm
An infrastructure for the potential growth of the
firm
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Organization Structure TYPES
Organized around clients From outside in
Organized around project types - Diverse
Organized around geography Across globe/regions
Organized around principals Favoritism with one
Organized around studios Schools, institutions
Organized around services multi services offer
The Matrix Organization when large and diverse
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Organization Structure Yours???
Start with a clean slate
Strategic planning in organizing your structure should
start afresh and NOT BURDENED BY LEGACIES
Resist the temptation to put the names in boxes
Work out the best structure in terms of reporting and
hierarchy
Then assess the best people for each position
Think about then bringing people from within or
outside
Employees have to support and believe in it before
being implemented
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Fostering talent in your firm
TALENT, TEAMWORK, INTELLIGENCE & INTENSITY OF
THE PERSONNEL are fundamental to overall success
Planning is required to develop the staff apart from
providing necessary PF, insurance, commission,
compensation, career path growth etc.
Firms hire new graduates and applicants only when
they need more people, without planning for the
development and future contribution of their own hires
Look out for the best talent who have demonstrated
abilities and potential for further development
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Talent is not limited to design abilities
Design might be the primary focus in school BUT
less that 5% of graduates will function as
designers in top firms
Design requires only 15% of the person-hours in
architectural practice
During organization structure, this needs to be
taken care off as well
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Some of the classification to nurture the talent and
contribute to the growth of your staff (senior) are:
Conceptual Architect who conceives of design solutions
that may be outside his/her previous experience
Development Architect a job captain who can take a
concept and make it buildable
Structural/HVAC Architect people with technical know-
how to guide concept and development
Administrative Architect the project manager with
experience in one of the other roles but a higher ability
to communicate among the various architect roles and
with the client
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Give the recent graduates (pre-architects) the
opportunity to work under you or a senior staff
Every fresh graduate may want to work on design
but not all are qualified to do so
Reasons for juniors to work with the seniors are:
It nurtures the skills of the less advanced staff and helps
to grow fundamentals
It gives the firm a chance to evaluate their abilities
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Give opportunity to architects to work with
development architects and project engineers as
learning will be both ways
Evaluate emerging staffs very critical from
leadership point of view to determine the character
and success of a firm
GROWTH OF THE FIRM IS RELATED TO THE
INDIVIDUAL DEVELOPMENT OF EACH EMPLOYEE
As an architect, who leads your firm, a basic
understanding of MANAGEMENT is a must
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Effective management is the combination of
leadership, decision making and vision
You are responsible for:
Communication with the employees within the
organization
Making decisions under conditions of uncertainty
Strategic Planning
Lead the people rather than contain them, direct rather
than control
Your employees are resources and opportunities NOT
problems, costs and threats
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Responsibility towards consultants & associates
Shall provide info in a timely manner regarding
requirements for and limitations on a project
including a copy of the clients program for the
project
Shall request info from the client as necessary and
relevant for the consultant to evaluate, give notice
of or enforce lien rights
Shall furnish all the requirements to the consultant
Shall assist in pre-qualification and in the process of
tendering and contracting as well as in payment
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Shall identify a representative authorized to act on the
architects behalf on a project
The architect or the identified representative shall render
decisions in a timely manner pertaining to documents
submitted by the consultants in order to avoid reasonable
delay in the orderly and sequential progress of the
consultants services
On consultants request, the architect shall furnish the
following in a timely manner:
Detailed layout showing locations of respective services
Tabulations giving size, loads and other information on equipment
designed, specified or furnished by others for design and coordination
Other docs as needed from time to time
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Architect shall confer with the consultant before issuing
interpretations or clarifications of documents prepared by
the consultant and shall request the recommendation of
the consultant before providing interpretations or
clarifications on shop drawings, data, samples or other
submissions to the contractor or upon change orders or any
other directives that may affect the project
Architect shall furnish to the consultant a copy of the
prelim or the updated estimate, bid documents, bid, bid
tabs, negotiated proposals, contract documents etc
Architect shall advice the consultant of the identity of
other consultants in the project and their scope of services
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Ifthe consultant reasonably request info from
investigators, surveys, tests, analysis and reports or
the services of other consultants not within the scope
of the consultants services, the architect shall request
that the owner shall furnish the info of services
Architect shall be entitled to rely on the accuracy and
completeness of services and info furnished by the
consultant
Architect shall provide prompt written notice to the
consultant if the architect becomes aware of any
errors, omissions or inconsistencies in services
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Elementary Accounts
Basics of accounting in architectural firms are not
complex
Basic understanding of certain fundamentals is necessary
Firms need to make profit and understanding of financial
aspects help
Income and Expenses
Income statement has only one category to record
revenue
Income statement has four categories to record expenses
Need to differentiate INCOME & REVENUE
Income Revenue = Profit/Loss
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Elementary Accounts
Arch firms have very specific accounting
requirements
Work is typically done on project basis
Usually, BILLING is primarily a function of time
Architects also work with clients closely to meet
the expectations and managing communication is
essential
EOD, all firms want to become more profitable
What can we do differently to become more
profitable???
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Elementary Accounts
If you can actually

count your money, then
you are not really a rich
man Paul Getty,
American Industrialist
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Elementary Accounts
Key factor to measure the success of your architectural
practice is the Financial Temperature of your firm
To maintain normal Financial Temperature for your firm,
it is important to have basic insights of finances so that
you can manage to accomplish your goals
The financial health of your company is based on 5 basic
account types:
Assets
Liabilities
Equity
Income
Expenses
INTRODUCTION TO THE
Elementary Accounts ASSETS
Possessions which are tangible or intangible in
nature which can be ENCASHED
Your investment as capital, money required to
establish your office, buying equipments, software,
car, furniture etc
Elementary Accounts LIABILITIES
Sum of money you owe to others
Car loan, borrowing from banks, relatives etc
This is the money which you are LEGALLY REQUIRED
TO PAY BACK in installments or as per agreed T&C
INTRODUCTION TO THE
Elementary Accounts EQUITY
The value of the firms assets, generally called net-worth
Equity = Assets Liabilities
Higher the equity, the more healthy is your firm
Elementary Accounts INCOME
Also called Revenue
Gross income is generated from project fee, any other JV,
interest, dividend, royalties etc
Net income is profits remaining after expenses have been
deducted from gross income
INCOME ALWAYS INCREASES YOUR EQUITY
MORE THE INCOME, BETTER IS THE FINANCIAL HEALTH
INTRODUCTION TO THE
Elementary Accounts EXPENSES
Payment towards the services or goods purchased
from others
Expenses are of two types:
DIRECT EXPENSES which can be directly related to your
project (payment towards staff salary, consultant,
conveyance etc.)
INDIRECT EXPENSES are of general administrative nature
which cannot be directly related to a specific project
(marketing, taxes, office supplies etc)
Expensesalways decrease your equity
MORE THE EXPENSES, WEAKER THE FINANCIAL HEALTH
INTRODUCTION TO THE
Elementary Accounts PROFIT & LOSS
Profit= Revenue Expenses
When the above value results in negative, it is a LOSS
P&L has to be computed under certain standard rules
laid down by the tax act
The financial health of your firm is depicted in the
Balance Sheet
Balance Sheet covers assets, liabilities and equity,
which reflect the value of how much you own and owe
Income & Expenses account, also called, P&L account,
reflects changes in value of how much you own and
owe on a particular date or period
INTRODUCTION TO THE
INTRODUCTION TO THE
Elementary Accounts FUNDING CHOICES
Personal Savings
Borrowing from friends and family
Getting a loan from bank
Getting a partner and using his/her personal funds
Going to Venture Capital company
Other investors
INTRODUCTION TO THE
Tax Liabilities (ST, IT, PAN, TDS)
Date of introduction: 16.10.1998 (vide notification
53/98 ST dated 07.10.1998)
Definition & Scope of Service
Taxable Service means any service provided or to be
provided to any person, by an architect, in his professional
capacity, in any manner [Section 65(105) (p) of Finance Act,
1994, as amended)
Architect means any person whose name is, for the time
being, entered in the register of architects, maintained
under Section 23 of Architects Act 1972 and also includes
any commercial concern engaged in any manner, whether
directly or indirectly, in rendering services in the field of
architecture [Section 65(6) of Finance Act, 1994 as amended]
INTRODUCTION TO THE
Tax Liabilities
Rate of tax & Accounting Code
Rate of tax wef 24.02.2009

INTRODUCTION TO THE
Tax Liabilities Classification of taxable service
The classification of taxable services shall be determined
according to the terms of the sub-clauses (105) of section 65;
When for any reason , a taxable service is prima facie,
classifiable under two or more sub-clauses of clause (105) of
section 65, classification shall be effected as follows :-
(a) The sub-clause which provides the most specific description shall be
preferred to sub-clauses providing a more general description;
(b) Composite services consisting of a combination of different services
which cannot be classified in the manner specified in clause (a), shall

be classified as if they consisted of a service which gives them their
essential character, in so far as this criterion is applicable;
(c) When a service cannot be classified in the manner specified in
clause (a) or clause (b), it shall be classified under the sub-clause which
occurs first among the sub-clauses which equally merits consideration.
( Sec.65A of Finance Act,1994)
INTRODUCTION TO THE
Tax Liabilities Valuation of taxable services for charging
Service Tax
(1) Service tax chargeable on any taxable service with
reference to its value shall,
(i) In a case where the provision of service is for a consideration
in money, be the gross amount charged by the service provider
for such service provided or to be provided by him;
(ii) In a case where the provision of service is for a
consideration not wholly or partly consisting of money, be such

amount in money, with the addition of service tax charged, is
equivalent to the consideration;
(iii) In a case where the provision of service is for a
consideration which is not ascertainable, be the amount as may

be determined in the prescribed manner.
INTRODUCTION TO THE
Tax Liabilities Valuation of taxable services for charging
Service Tax
(2) Where the gross amount charged by a service provider,
for the service provided or to be provided is inclusive of
service tax payable, the value of such taxable service shall
be such amount as, with the addition of tax payable, is
equal to the gross amount charged.
(3) The gross amount charged for the taxable service shall
include any amount received towards the taxable service
before, during or after provision of such service.
(4) Subject to the provisions of sub-sections (1), (2) and
(3), the value shall be determined in such manner as may
be prescribed.
INTRODUCTION TO THE
Tax Liabilities Inclusion in value of certain
expenditure or cost
Where any expenditure or costs are incurred by the
service provider in the course of providing taxable
service, all such expenditure or costs shall be
treated as consideration for the taxable service
provided or to be provided and shall be included in
the value for the purpose of charging service tax on
the said service [Rule 5(1) of Service Tax
(Determination of Value) Rules, 2006]
INTRODUCTION TO THE
Tax Liabilities Exclusion from value of certain expenditure
or cost
The expenditure or costs incurred by the service provider as
a pure agent of the recipient of service, shall be excluded
from the value of the taxable service if all the following
conditions are satisfied, namely:-
The service provider acts as a pure agent of the recipient of service
when he makes payment to third party for the goods or services
procured
The recipient of service receives and uses the goods or services so
procured by the service provider in his capacity as pure agent of

the recipient of service
The recipient of service is liable to make payment to the third party
The recipient of service authorizes the service provider to make
payment on his behalf

INTRODUCTION TO THE
Tax Liabilities Exemption & Exclusion
Exemption to small scale service providers
Inexercise of the powers conferred by sub-section
(1) of section 93 of the Finance Act, 1994 (32 of
1994) (hereinafter referred to as the said Finance
Act), the Central Government, on being satisfied
that it is necessary in the public interest so to do,
hereby exempts taxable services of aggregate value
not exceeding Ten lakh* rupees in any financial
year from the whole of the service tax leviable
thereon under section 66 of the said Finance Act:
INTRODUCTION TO THE
Exemption to small scale service providers
Provided that nothing contained in this
notification shall apply to,-
Taxable services provided by a person under a brand
name or trade name, whether registered or not, of
another person; or
Such value of taxable services in respect of which
service tax shall be paid by such person and in such

manner as specified under sub-section (2) of section
68 of the said Finance Act read with Service Tax
Rules,1994.
INTRODUCTION TO THE
Services to UN Agencies
Servicesprovided to UN or International
Organizations are exempt [Notification No 16/2002-
ST, dated 02.08.2002]
Export of Service
Anyservice which is taxable under clause 105 of
Section 65 may be exported without payment of
Service Tax [Rule 4 of Export of Services Rules,
2005]
INTRODUCTION TO THE
Exemption to services provided to a developer of SEZ or a
unit of SEZ
Exempts the taxable services specified in clause (105) of
section 65 of the said Finance Act, which are provided in
relation to the authorized operations in a Special Economic
Zone, and received by a developer or units of a Special
Economic Zone, whether or not the said taxable services
are provided inside the Special Economic Zone, from the
whole of the service tax leviable thereon under section 66
of the said Finance Act subject to certain conditions
[Notification No. 09/2009ST dated 03.03.2009 (Prior to
03.03.2009 Notfn.No4/2004-ST dated 31.03.2004)]
INTRODUCTION TO THE
Exemption to value of goods & material sold by service
provider
In exercise of the powers conferred by section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, being
satisfied that it is necessary in the public interest so to do,
hereby exempts so much of the value of all the taxable
services, as is equal to the value of goods and materials sold by
the service provider to the recipient of service, from the
service tax leviable thereon under section (66) of the said Act,
subject to condition that there is documentary proof
specifically indicating the value of the said goods and materials
[Notification No. 12/2003-ST dated 20.06.2003 effective from
01.07.2003]
INTRODUCTION TO THE
Exemption to taxable services provided by TBI &
STEP
All taxable services, provided by a Technology
Business Incubator (TBI) or a Science and Technology
Entrepreneurship Park (STEP) recognized by the
National Science and technology Entrepreneurship
Development Board (NSTEDB) of the Department of
Science and Technology, Govt. of India from the
whole of the service tax leviable thereon subject to
certain conditions and procedures
[Notification No.09/2007 ST dated 01.03.2007]
INTRODUCTION TO THE
Exemption to taxable services provided by
entrepreneurs located within the premises of TBI & STEP
All taxable services, provided by an entrepreneur
located within the premises of a Technology Business
Incubator (TBI) or a Science and Technology
Entrepreneurship Park (STEP) recognized by the
National Science and technology Entrepreneurship
Development Board (NSTEDB) of the Department of
Science and Technology, Govt. of India from the whole
of the service tax leviable thereon subject to certain
conditions and procedures
[Notification No.10/2007 ST dated 01.03.2007]
INTRODUCTION TO THE
Exemption to services provided to Foreign
Diplomatic Missions or Consular Post in India
All services provided by any person, for the
official use of a Foreign Diplomatic Mission or
Consular Post in India are exempted from
service tax subject to certain conditions and
procedures
[Notification No. 33/2007-ST dated 23.05.2007]
INTRODUCTION TO THE
Exemption to services provided for personal use of
a family member of Diplomatic Agent or Career
Consular Officers posted in Foreign Diplomatic
Mission/Consular Post in India
All services provided by any person, for personal
use of family member of Diplomatic Agents or
Career Consular officers posted in a Foreign
Diplomatic Mission or Consular Post in India are
exempted from service tax subject to certain
conditions and procedures
[Notification No. 34/2007-ST dated 23.05.2007]

Unit 1 - Introduction To Architectural Profession

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Rate of tax wef 24.02.2009

which cannot be classified in the manner specified in clause (a), shall

consideration not wholly or partly consisting of money, be such

consideration which is not ascertainable, be the amount as may

procured by the service provider in his capacity as pure agent of

The recipient of service authorizes the service provider to make

payment on his behalf

service tax shall be paid by such person and in such

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