Real Estate & Construction
Real estate involves complex tax structures, project-based accounting, and heavy regulatory compliance. We help developers and builders navigate these complexities efficiently.
Our Solutions
Real Estate GST Advisory
GST structuring for projects, input tax optimization, joint development agreement taxation, and reverse charge compliance.
Project Accounting & MIS
Project-wise P&L, cash flow forecasting, cost control, and lender-ready MIS reports.
Tax Planning for Developers
Section 80-IBA benefits, capital gains planning, and structuring for tax-efficient project delivery.
Industry Challenges
Challenges Faced by Real Estate & Construction
GST on Under-Construction Properties
Navigating GST on real estate (1% for affordable, 5% for others without ITC) and reverse charge on land costs.
Project-Based Accounting
Revenue recognition under IndAS 115, percentage of completion method, and project-wise profitability tracking.
RERA Compliance
Separate bank accounts for each project, quarterly compliance filings, and financial disclosures under RERA.
Our Approach
How We Help
Real Estate GST Advisory
GST structuring for projects, input tax optimization, joint development agreement taxation, and reverse charge compliance.
Project Accounting & MIS
Project-wise P&L, cash flow forecasting, cost control, and lender-ready MIS reports.
Tax Planning for Developers
Section 80-IBA benefits, capital gains planning, and structuring for tax-efficient project delivery.
Proven Results
Client Case Studies
Real examples of how we've helped real estate & construction businesses solve complex financial challenges.
Residential Developer (3 Simultaneous Projects)
Challenge
A residential developer needed GST restructuring after the 2019 rate change (from 12% with ITC to 5% without ITC). RERA-compliant financial reporting was not in place, and the builder was maintaining single-account books for 3 simultaneous projects.
Our Solution
Restructured GST filings post-rate change with proper transition calculations, implemented project-wise accounting with separate bank accounts per RERA requirement, set up quarterly RERA financial disclosures, and conducted cost-benefit analysis for each project.
Result
Saved 18% on input costs through proper GST structuring during transition. Achieved zero RERA compliance defaults across all 3 projects. Project-wise MIS helped identify one underperforming project early, saving Rs 45 lakh in potential overruns.
Joint Development Agreement — 2-Acre Residential Project
Challenge
A landowner-developer JDA for a 2-acre residential project needed proper tax structuring. The landowner faced capital gains exposure of Rs 3.2 crore, and the developer needed clarity on GST applicability on the landowner's share of constructed units.
Our Solution
Structured the JDA under Section 45(5A) to defer capital gains until completion certificate. Advised on GST reverse charge mechanism for the developer's supply to the landowner. Prepared development agreement with proper tax clauses and TDS compliance.
Result
Capital gains tax deferred until project completion under Section 45(5A), improving the landowner's immediate cash flow significantly. Developer's GST reverse charge compliance structured correctly from Day 1. Both parties received clear tax position documentation, reducing dispute risk.
Commercial Real Estate Developer (Rs 120 Cr Turnover)
Challenge
A commercial developer with Rs 120 crore turnover had inconsistent revenue recognition across projects. Lenders were questioning financial statements, and the statutory audit was repeatedly delayed due to accounting gaps.
Our Solution
Implemented percentage of completion method per IndAS 115, set up project-wise cost centers and revenue tracking, prepared lender-compliant MIS with quarterly certifications, and streamlined the statutory audit process with pre-audit documentation.
Result
Statutory audit completed on time for the first time in 3 years. Lender confidence improved with standardized quarterly MIS. Revenue recognition corrected, reflecting Rs 3.2 crore in previously misclassified project revenue across 2 ongoing projects.
Disclaimer: As per the guidelines of the Institute of Chartered Accountants of India (ICAI), the names of clients cannot be disclosed. The case studies presented above are based on actual engagements, with client identities anonymized to comply with ICAI professional standards and maintain confidentiality.
Common Questions
Frequently Asked Questions
Affordable housing (up to Rs 45 lakh) attracts 1% GST, while other residential properties attract 5% GST — both without input tax credit. Commercial properties attract 12% with ITC.
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Learn MoreReady to Optimize Your Real Estate & Construction Finances?
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