PROFESSIONAL

PRACTICE
PRESENTED TO: PRESENTED BY:
AR. HIMANSHU GARG AKANSHA & MOHD.ASIF
CONTENTS
1. Setting up practice- Business organization,
2. Types of offices- proprietorship, partnership, Private Limited etc.,
3. Structure of architecture office organization,
4. Salaried appointments - public sector, private sector.
5. Basic understanding of Income tax and GST,
6. Basic understanding of Office accounting procedures.
7. Office Procedure in government organization.
  Small firms with fewer than five 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
BUSINESS departmentally in departments such as design, production,
ORGANISATION business development, and construction administration.
 Large firms of over 50 people may be organized departmentally,
regionally, or in studios specializing in project types.
 Other permutations also exist.
  Office is an entity different from oneself. Capital invested is a loan to
office. The office should pay back the money in the form of profit
with interest too.
 Steps for setting up a office:
1. Start your proprietary firm
2. Open a Fresh Bank Account apart from ongoing personal account
SETTING UP A 3. Office Account (strictly office account)

OFFICE 4. Capital is deposited in this account

5. All office expense is taken care by this account
6. Fees will also be deposited in this account
7. Detailed Pay In Slip Book should be maintained for all cheque with
proper Bill No
8. Office account is usually Current Account, so no need to keep huge
amount, you wont get interest as it’s not an saving account.
 1. Sole proprietorship: 
 A sole proprietorship views your personal assets and business assets
(and liabilities) as one and the same. It’s meant for a single
individual with no employees.
 In most cases you’re not required to file any legal creation
TYPES OF paperwork with your state, and you’ll use your social security
number for tax purposes.
OFFICES  Always check with your local municipality for specific requirements.
[ based on  The most paperwork you’ll typically encounter will be simple, things
ownership ] like filing a “Doing Business As” (DBA) form along with paying a
small fee.
 Many architects choose sole proprietorship as their initial business
structure, because it’s simple.
 2. PARTNERSHIP FIRM:
 Investment of capital will be taken care by the partners
 Partnership activity is governed by (INDIAN PARTNERSHIP ACT
1932).
TYPES OF  (ARCHITECTS ACT 1972) says that in an architectural firm all
partners should be registered architects .
OFFICES
 The decisions you’ll face in a partnership won’t differ from those
[ based on you’ll confront as a sole proprietor, but you’ll want to commit
them to a written (ideally legal) document to which you and your
ownership ] partner(s) agree.
 The tax implications with this business structure are similar to
those of a sole proprietorship; the profits of the firm are attributed
to each owner per their ownership stake.
 3. LLC/LLP and corporations: 
• Limited liability corporations (LLCs) and limited liability
partnerships (LLPs) have differing sets of requirements, governing
regulations and fees, and they all treat business assets much
differently than both sole proprietor and partnership structures.
TYPES OF
• Despite their differences, LLCs, LLPs and corporations all offer
OFFICES increased protections to both the individual and the business.
[ based on • Many sole proprietors transition to these entities as their
workload and exposure to risk increase.
ownership ] • That increased protection does have a cost: a lot more up-front
paperwork.
  PRIVATE LTD. FIRM:
 Size of partnership firm increases and annual income of firm goes
up (for tax benefits they will convert the firm into private limited
company)
TYPES OF  Company has to be registered with Registrar of companies as
OFFICES per(companies act 1956)
 If non architects were one of the member of the company then
[ based on company will be registered as business firm not a professional
ownership ] firm.
 They can offer variety of services in one single roof. Architecture
practice
 STRUCTURE
PRINCIPAL

STRUCTURAL / SURVEY
DRAWING/ DESIGN OFFICE DEPARTMENT  ADMINISTRATION FUNCTION

ARCHITECTURE
OFFICE FUNCTION : POSTS FUNCTION : POSTS :
FUNCTION: POSTS :
Structural design :Structural Office Manager/Secre
Development of Senior
Inputs designer correspondence tary
design concept architect

ORGANIZATION Scheme
drawing
Project
architect
Land survey
Quantity survey
Quantity
surveyor
Civil
Book keeping
Accounts
Observation of
Accounts clerk
Clerk/typist
Municipal Assistant Specifications govt tax, rules Receptionist
engineer
drawing architect Peon
Estimation Draftsman  Stationery
Working Junior purchase
Preparation of
drawing Details architect Maintenance of
contract papers
Presentation Drafts man office equipment
Bill checking &
drawings Trainee checking of item House keeping
Views etc rates etc 
  INCOME TAX -This is the central government tax on the income of an individual and of
company as well.
 GROSS INCOME – ALLOWABLE EXPENSES = NET INCOME
(Net income alone is considered for taxation)
 Expenditure under all the above Heads Explained Under Ledger above up to certain
proportion is Allowable Expense .
 Many ways to save money and to pay minimum taxes.
UNDERSTANDING  Money spend on the Following Schemes will Help In Reducing The Tax:
INCOME TAX & GST 1. LIFE INSURANCE
2. PUBLIC PROVIDENT FUND
3. NATIONAL SAVING SCHEME
4. LOAN FROM BANK
 Hand loan when returned is not deductible from the gross income.
 Money if borrowed from any bank, the loan and the interest paid will be deductible
from the gross income. Its convenient to borrow money for the development of office
  Book of account and other documents need to be maintained in an office
under the rules of income tax act Following are the documents :
1. CASH BOOK
2. JOURNAL
3. CARBON COPIES OF MACHINE NUMBERED BILLS
4. BILLS, RECEIPTS AND VOUCHERS
UNDERSTANDING
5. LEDGER
ACCOUNTING  CASH BOOK -Its a Record Of All Transactions (income and expenditure in cash)
PROCEDURE  Each expenditure shall be supported by either a Receipt Or Voucher
 If there is no cash transactions in office no need to maintain cash book
 PETTY CASH BOOK-It’s a record of day to day expenditure (tea, coffee,
stationery) of small value is entered in this book )
 LEDGER -Transactions recorded in cash book and journal are posted in the
ledger under Different head of accounts.
  For an architects office different head of expenditure mentioned below:
1. Office rent and other charges like common service charges of the building or
property tax
2. Stationery & printing charges
3. Postage
4. Electricity bills
UNDERSTANDING 5. Telephone bills
ACCOUNTING 6. Salary bill paid to slip

PROCEDURE 7. Fees paid to consultants & surveyors

8. Interest paid to loan amount
9. Membership fees, registration charges in professional bodies and clubs, expenses
for attending professional seminars, conventions, workshops, meetings etc.
10. Purchase of book, periodicals, newspapers etc
11. Travelling expenses
12. Entertainment
 My Chart Title
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1/6/20YY Working
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1/8/20YY 1/7/20YY
Thank you
  It is important that an architect's appointment is set out in writing
as soon as is practically possible, defining the scope of services
 that are likely to be required and the fee that will be charged for
those services. If the architect is to perform lead designer, 
lead consultant or BIM information manager roles, this must be
clearly agreed.
 RIBA Standard Agreement for the Appointment of an Architect 20
FORM OF 10
.
APPOINTMENT  ACA SFA 2010: ACA Standard Form of Agreement for the Appoint
ment of an Architect: (English Law)
.
 Where a standard form is not used, it is suggested that the
following matters should be clearly identified in any exchange of
letters:
 The date of the agreement.
 The name and address of the employer.
 The name and address of the architect.
  The title and address of the project.
 The formal agreement to the appointment of the architect.
 The basis of remuneration for the architect and the arrangements
for payment.
 The form and scope of services to be provided by the architect.
 The appointment procedure for a quantity surveyor, other 
FORM OF consultants and the clerk of works as appropriate.
APPOINTMENT  The procedure to be followed in the event of the architect's
 incapacity.
 The procedure for the termination of the agreement.
 The procedure for resolving disputes between parties.
 The name of an agreed adjudicator or the agreed nominator of an 
adjudicator.
  As per Article 279A of the amended Constitution, the GST Council is a joint
forum of the Centre and the States, and consists of the following
members: -
 Union Finance Minister - Chairperson
 The Union Minister of State, in-charge - Member
of Revenue, Min. of Finance
GST COUNCIL  The Minister In-charge of Finance - Members

STRUCTURE or Taxation or any other Minister

nominated by each State Government.
The Council is empowered to make recommendations to the Union and the
States on the following:-

(a) the taxes, cesses and surcharges levied by the Union, the States and the
local bodies which may be subsumed in the goods and services tax;
(b) the goods and services that may be subjected to, or exempted from the
goods and services tax
  (c) model Goods and Services Tax Laws, principles of levy,
apportionment of Integrated Goods and Services Tax and the
principles that govern the place of supply;
(d) the threshold limit of turnover below which goods and services
may be exempted from goods and services tax;
(e) the rates including floor rates with bands of goods and services
tax;
(f) any special rate or rates for a specified period, to raise
GST COUNCIL additional resources during any natural calamity or disaster;
(g) special provision with respect to the States of Arunachal
STRUCTUR Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and
Uttarakhand; and
(h) the date on which GST shall be levied on petroleum crude, high
speed diesel, motor spirit (petrol), natural gas and aviation turbine
fuel
(i) any other matter relating to the goods and services tax, as the
Council may decide.