"architect" means any person whose name is, for the time being, entered in the register of architects

Indian Service Tax

Architect

Effective Date: 16/10/1998

Authority: Notification No. 53/98-ST, dt. 07/10/1998 (See at the end of this Chapter).

Rate of Service Tax: 8% from 14/5/2003 (5% upto 13/5/2003) 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definition

"architect" means any person whose name is, for the time being, entered in the register of architects maintained under Section 23 of the Architects Act, 1972 (20 of 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)].

Taxable service: Architect providing service to a client in his professional capacity in any manner.

Value of taxable service: The gross amount charged by such architect from the client for service rendered in professional capacity in any manner.

Exemptions

• See Chapter on "General Exemptions"

• Specific exemptions

  (i) Interior decorators

  (ii) Consulting Engineer

  (iii) Landscape designers & developers

Person liable to pay: Architect

NB: Also see para 4.6 of T.N. No. 116/98-ST, dt. 15-10-1998 under "Interior Decorators".

Head of Account

S1.Code SCCD Minor-head 004400119 Architect Services 00440071 Sub-head 00440011901 Tax Collection 00440072 119 Sub-head 00440011902 Other Receipts 00440073 112 Sub-head 00440011903 Deduct Refunds 00440074 117

Questions & Answers

Q. Who is an Architect?

Ans. "Architect" is a person whose name is for the time being, entered in the register of architects maintained under section 23 of the 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.

Q. What is the taxable service in case of an Architect?

Ans. 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.

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

Ans. 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 manner.

Q. Whether the registered private surveyors (who are registered under municipality or corporation) come under the Architect's service. Are they liable to pay Service Tax?

Ans. Architects registered under Section 23 of Architect Act, 1972, and providing services like surveyor would attract service tax under Sec.65 (5) of Finance Act, 1994, as amended.

Main text of Departmental Circular/TN

[TN No. 116/98-ST, dt. 15-10-1998 of Hyderabad Commissionerate]

4.1 Under Section 65(5) of the Finance Act, 1994, an "architect" has been defined to mean any person whose name is, for the time being, entered in the register of architects maintained under Section 23 of the 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. The nature and scope of the services rendered by architects are well delineated under the provisions of the Architects Act.

4.2 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.

4.3 The services rendered by an architect are of a very diverse nature and are spread over a fairly long period of time. At the time when an architect is actually engaged for a particular project, letters (contract) is exchanged for the same between the architect and the person engaging him. The contract/agreement details the entire scope of the services to be rendered by the architect, including the terms and conditions of employment and the payment schedule for the service rendered by the architect. The "taxable service" means any service provided to a client by the architect in his professional capacity in any manner.