| Q.1 |
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.2 |
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.3 |
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.4 |
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. |
| Q.5 |
Who is an ‘ Interior
Decorator’? |
| Ans. |
"Interior decorator"
is a person engaged, whether directly or indirectly, in the
business of providing by way of advice, consultancy, technical
assistance or in any other manner, services related to planning,
design or beautification of spaces, whether man-made or otherwise
and includes a landscape designer. |
| Q.6 |
What is the taxable
service in case of Interior decorator ? |
| Ans. |
Taxable service is a
service provided to a client, by an interior decorator in relation
to planning, design or beautification of spaces, whether man-made
or otherwise, in any manner. |
| Q.7 |
What is the value
of the taxable service in case of an Interior Decorator? |
| Ans. |
Value of the taxable
service in relation to the service provided by an interior decorator
to a client, is the gross amount charged by such decorator from
the client for services rendered in relation to planning,
design or beautification of spaces in any manner. |
| Q.8 |
How would the Service
tax liability be determined in cases of ongoing projects, i.e.,
the projects which started before 16th October, 1998
and still continuing after 16th October,1998. |
| Ans. |
In such cases, the service
tax is payable only in respect of the part of the services rendered
on or after the date on which the service tax provisions come
into force i.e 16th October, 1998. Service tax is
not required to be paid on payment received for services rendered
prior to the service concerned being notified. |
| Q.9 |
Is service tax also
liable to be paid by an Architect or an interior decorator to
whom the work has been delegated by another Architect or Interior
Decorator? |
| Ans. |
No, in cases where an
architect/interior decorator sub-contracts part/whole of his
work to another architect/interior decorator, no service tax
is required to be paid by the sub-contractor provided that the
principal architect/interior decorator has paid the service
tax on the services rendered by him to the client and provided
the sub-contracting is in respect of the same service category.
For instance when the work is sub contracted by one architect
to another architect, if the principal architect pays the service
tax on services rendered by him to his client, the sub-contracting
architect is not required to pay the service tax. However, service
tax would be required to be paid in a case where sub contracting
is to different service category. For example where an architect
sub contracts his work to a consulting engineer, then service
tax would be required to be paid separately by both the architect
and the consulting engineer on the services rendered by them. |
| Q.10 |
Is the payment made
by an Architect or Interior Decorator for supply of material,
items of furniture or decoration includible in the value of
the taxable service? |
| Ans |
No. The service tax
is not leviable on supply of materials, items of furniture or
decoration, per se, but only on services rendered in any manner
concerning planning, design or beautification of spaces. |
| Q.11 |
Are the Services
rendered by the Art director of films and others for setting
up temporary structure or sets for shooting covered in the category
of service provided by an Architect or Interior Decorator? |
| Ans. |
No. The services rendered
by Art directors of films and others who render services of
design etc. for setting up temporary structures/settings for
shootings, etc. do not attract the service tax levy as such
interior decoration is only of a temporary nature. |
| Q.12 |
Whether Vaastu/Feng
Shui Consultants come under the category of Interior Decorators
? |
| Ans. |
Interior Decorator means
any person engaged whether directly or indirectly, in the business
providing by way of advice, consultancy, technical assistance
or in any other manner services related to planning,
design or be antification of spaces, whether man made or other
wise. Since Vaastu/Feng Shui Consultants are offering
services by way of advice relating to planning and designing
of spaces, they come under the category of Interior Decorators. |
