Real Estate & Construction
Constructing Compliance from Foundation to Handover.
The Landscape
Real Estate is the most regulated sector in India, sandwiched between GST, RERA, and Income Tax. A mistake in fund usage or tax calculation on Joint Development Agreements can stall a project indefinitely.
Key Challenges
GST Complexity
Revenue Recognition
Fund Segregation
What We Offer
JDA Taxation
Cost Sheet Optimisation
Co-operative Society Audits
RERA Compliance
Who this is for
Real estate and construction clients come to us with a project that is regulated from every direction: RERA, GST, income tax and the lenders. That includes developers with several projects, landowners entering a joint development agreement, contractors and co-operative societies taking over a completed project.
The work is project-first. We keep separate books and bank accounts for each project, because that is the requirement and also the only way to answer a RERA or lender question without a rebuild.
We have seen projects where the accounts were reconstructed after a RERA query or a lender review. The cost of that rebuild is much higher than keeping the project ledgers current, which is why we start with structure.
How we work with Real Estate & Construction businesses
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Project structure review
We map the entity, the land, the approvals, the funding and the revenue model before the accounting is set up.
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Project accounting
Each project gets its own cost sheet, bank account, budget and percentage-of-completion working, reconciled to the RERA reporting.
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Tax position
GST treatment of construction, JDA and society handover is documented, along with the TDS and income tax positions that follow.
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Reporting
Quarterly RERA reports, lender statements and the board pack are produced from the same project ledgers.
The SCORE Advantage
What you can expect
The developer can show a lender or the authority exactly where each project stands, which costs are committed and which are still to come. Disputes about fund diversion become much harder to raise when the project accounts are separate and current. The project ledger is also the base for the quarterly RERA report, so the reporting is a by-product rather than a separate task.
Frequently asked questions
Do RERA rules require separate bank accounts?
Yes. A developer must maintain a separate account for each project, deposit a defined share of receipts and withdraw only for that project's construction costs, subject to the prescribed certification. Project-wise books make this routine. The certification and withdrawal rules differ by state, so the account structure should be confirmed at launch.
How is GST applied to a joint development agreement?
The treatment depends on whether the landowner receives constructed units, revenue share or a mix, and on the timing of the transfer. The position should be documented before the agreement is signed, because it affects both parties. The agreement should also say who bears the tax and when the invoice is raised.
What is the percentage of completion method?
Revenue and cost are recognised according to the stage of completion of the project, measured against the contracts and the cost incurred. The method must be applied consistently and reconciled to the RERA disclosures. The auditor will test the cost-to-cost working, so the project ledger has to support it.
What GST rate applies to under-construction flats?
The rate depends on the project type and the effective date, with affordability and carpet-area conditions for some rates. Input tax credit availability also differs, so the position should be confirmed for each project before invoicing. A wrong rate on a large project can create a demand that is difficult to recover from buyers.
Can you audit a co-operative society?
Yes. We handle society audits, the handover from builder to society, maintenance accounting and the statutory records the registrar expects to see. The handover file, the maintenance accounts and the registrar filings are all part of the work. We also prepare the handover accounts.
How do you account for advances from buyers?
Buyer receipts are tracked project-wise and matched to the invoices raised under the agreement. The balance is reconciled to RERA reporting and to the lender statement every quarter. The same schedule supports the GST and income tax positions. The reconciliation is reviewed before the quarterly filing.
How do you handle RERA reporting?
We compile the quarterly project reports from the project ledger, reconcile them to the bank accounts and the cost sheet, and keep the filings on record. The report then matches the accounts rather than being rebuilt from emails. The working papers stay with the project file.
How do you handle a project with multiple lenders?
We maintain a project-wise cost and funding statement, reconcile drawdowns to the sanctioned terms and prepare the statements each lender requires, so that one lender's reporting does not contradict another's. A single project ledger avoids the situation where two lenders hold different numbers for the same project.