Construction & Real Estate

RERA, GST, project finance, JDA
— we hold all four pressure points.

For builders, developers, JDA partners, and real estate firms — the CA practice that already speaks your language. RERA registration, project-wise compliance, GST scheme selection, JDA structuring, Section 45(5A) for landowners, and Ind AS 115 revenue recognition.

Active Retainers25+ Developers
RERA PracticeSince 2017 Day 1
JDAs Structured15+ Projects
Form 5 FilingsNever Missed
Who This Page Is For

If your file looks like one of these — keep reading.

01

Active Developer (1+ project)

Residential or commercial, 8+ flats or 500 sqm — RERA applies. Quarterly returns, escrow account, project-wise GST. You need a CA who tracks all of it on a project calendar, not an annual one.

02

JDA Partner (Builder or Landowner)

Joint Development Agreement on the table — area share or revenue share. Section 45(5A) implications, GST under reverse charge, future project ownership. Wrong structure = lakhs in avoidable tax.

03

Builder Needing Project Finance

Bank or NBFC loan for project funding. Need project-specific financials, escrow compliance proof, RERA closure certificates as collateral documentation. We structure the file the bank actually wants to see.

04

Real Estate Firm in GST Confusion

1% / 5% scheme without ITC vs 12% with ITC — chosen wrong, locked in for project life. Reverse charge GST on land procurement. Mid-project ITC reversal. We unblock it.

The Anchor

Real estate compliance is not annual — it's project-phased.

Miss a phase and you face RERA penalties, customer complaints, and stuck CC/OC certificates. Most CAs treat real estate like any other industry — annual ITR, annual audit, done. We've built our process around your project lifecycle. Four phases, each with its own compliance stack.

01
Phase One

Project Conception (Pre-launch)

  • RERA registration filing — project plan, financials, approvals
  • Land title due diligence + chain documentation
  • JDA structuring — area share vs revenue share, tax-optimal
  • Project SPV setup — LLP vs Pvt Ltd decision
  • Approval document compilation for RERA portal
02
Phase Two

Construction (Active project)

  • Quarterly RERA returns (Form 5) — 70% escrow proof
  • Project-wise GST — scheme tracking, returns, reconciliation
  • TDS on contractor payments (Section 194C, 194Q)
  • Project finance — bank/NBFC documentation, drawdown reporting
  • Buyer-side TDS (194-IA) tracking on each booking
03
Phase Three

Handover (CC / OC + Sales)

  • GST treatment on under-construction vs completed sales
  • Capital gains for landowner under JDA — Section 45(5A)
  • Transfer of unsold inventory — tax treatment
  • Customer payment reconciliation
  • Final RERA project plan vs delivered comparison
04
Phase Four

Project Closure

  • RERA project closure filing
  • Final CC/OC documentation
  • Post-completion GST ITC reversal (if any)
  • Long-term capital gains computation
  • Project-level P&L closure + tax filings

Three real situations where the wrong call cost lakhs.

!

Wrong GST scheme — locked for project life. A developer chose 12% with ITC for a residential project. Buyers in the micro-market preferred 5% (no ITC) projects. Lost 8 months of sales velocity. The scheme cannot be changed mid-project.

Cost: Sales delay + ITC complications
!

Section 45(5A) missed for landowner. Landowner under JDA was taxed on capital gains in the year of agreement instead of year of CC issuance. Tax burden of ₹65 L hit immediately, with zero project liquidity. Section 45(5A) deferral was missed by previous CA.

Cost: ₹65 L cash flow shock
!

Form 5 RERA returns missed for 2 quarters. Project flagged on the public RERA portal. Customer panic. Sales stalled while the developer ran from RERA office to lawyer to old CA. Public-facing RERA defaults damage trust faster than tax notices.

Cost: 4 months stalled sales

If you are mid-project and any of this is uncertain — book a project review → We will map all four phases for your specific project in 60 minutes.

Services

The full real estate compliance stack.

Every line item that touches a residential or commercial real estate file in Gujarat — we handle it.

RERA RegistrationComplete filing on GujRERA portal — project plan, financial estimates, promoter declaration, encumbrance certificate, approvals stack.
RERA Quarterly Returns (Form 5)Project status, financial position, 70% escrow account compliance proof — filed on calendar, never late.
RERA Project ClosureFinal filing post-OC, project deregistration, customer handover documentation.
Project-wise GST Advisory1%/5% without ITC vs 12% with ITC — scheme selection, ITC reversal calculations, periodic returns (GSTR-1, 3B, 9, 9C).
Reverse Charge GSTRCM applicability — land transfers, services from unregistered suppliers, JDA mechanics. ITC eligibility tracking.
JDA StructuringArea share vs revenue share — modelled with tax impact on both developer and landowner. Section 45(5A) timing planning.
Section 45(5A) — Landowner TaxCapital gains deferral to year of CC issuance, computation of full value of consideration, indexation, exemptions u/s 54/54F.
Project Finance DocumentationBank/NBFC loan files — projected financials, project costing, security documentation, monthly drawdown reporting.
Internal Audits + Project CostingProject-wise P&L, BOQ vs actual variance, milestone tracking. Customer payment reconciliation.
Tax Audit + ITR Filings44AB tax audit, Form 3CD, ITR-6 for the SPV — done with project-segment disclosure your bank needs.
Ind AS 115 Revenue RecognitionFor listed entities or those targeting public listing — performance obligations, percentage-of-completion vs point-in-time recognition.
Retainership for BuildersMonthly bookkeeping, GST, TDS, payroll, ROC, RERA — single retainer covering the project lifecycle.
How We Work

Project-phased — not annual.

01

Project Kickoff Workshop

Map all 4 phases for your specific project. RERA, GST scheme, JDA structure, financing — modelled before launch. 90 minutes, free for new project starts.

02

Dedicated Project File

One CA tracks your project end-to-end — same person from RERA registration to OC closure. No handoffs, no learning curve every quarter.

03

Monthly Reviews During Construction

Project-level P&L, drawdown vs plan, escrow compliance, RERA filing readiness — reviewed every month. You see status before your bank does.

04

Closure Documentation Handed Over

Post-OC: RERA closure filing, final tax computations, project-level audited financials. Documentation pack handed over — clean, complete, dated.

Why Builders Choose Pujara & Co

What you actually get — that a generalist CA cannot give.

RERA practice from Day 1 (2017)

We started filing RERA registrations the year the Act took effect. Eight years of GujRERA portal nuances, deficiency memos, regulator interactions. We are not learning the portal on your project's time.

15+ JDAs structured

Both sides of the table — developer-favouring and landowner-favouring structures. Area share, revenue share, hybrid. Each one optimised for the actual tax position of the parties, not a template.

Direct GujRERA regulator experience

We have appeared before the regulator on customer complaints, project extension applications, and registration deficiencies. We know what is asked, what is acceptable, and what is denied.

Ahmedabad-based — same city as buyers

Same city as the regulator. Same city as your buyers. Same city as your bank's regional office. Site visits, regulator visits, bank visits — all happen the same week, not the same month.

Project-wise — not just entity-wise

Most CAs maintain entity-level books. We maintain project-level books in parallel. When your bank or buyer asks for project-specific financials, the data is already there — not reconstructed in panic.

Bank documentation we already speak

Project finance from HDFC, ICICI, Axis, Bandhan, NBFCs — we have submitted the same documentation packs they expect. Drawdown reports, security perfection, escrow proof — all in their format on Day 1.

A Real Client Situation

Three projects flagged on RERA portal. We unflagged them in 60 days.

Case · RERA Default Recovery

Mid-sized developer, 3 active projects, 2 flagged for late Form 5 returns.

The developer came to us after RERA flagged 2 of their 3 projects on the public-facing portal for late and incorrect quarterly returns. Their previous CA had been filing Form 5 quarterly — but in wrong format, with missing escrow disclosures. Customer trust dropped overnight when prospective buyers checked the RERA portal during diligence.

We took over filings, regularised past quarters with delay condonation petitions, and corrected escrow account documentation. Engaged with GujRERA on the deficiency notes for each project. All three projects un-flagged within 60 days. We have now filed 18 consecutive quarters across all three projects without a single deficiency.

3 projects un-flagged in 60 days18 clean quarters filed sinceSales velocity recovered
Anonymised. Specific numbers and timelines representative of typical outcomes.
Frequently Asked Questions

Builder questions, answered straight.

What is RERA and which projects need to register?

The Real Estate (Regulation and Development) Act, 2016. In Gujarat, GujRERA registration is mandatory for any project where: total area exceeds 500 sqm, OR more than 8 flats/units are planned. Commercial projects above 500 sqm also require registration. Projects under construction at the time of RERA implementation also had to register retroactively.

Can I sell flats before RERA registration?

No. Section 3 of RERA prohibits advertising, marketing, booking, selling, or offering for sale any plot, apartment, or building in a project that requires registration but is not registered. Pre-launch bookings before registration are illegal. Penalty can extend to 10% of the project cost for the developer.

What are quarterly RERA returns (Form 5)?

Form 5 is the quarterly project status update filed on the GujRERA portal. It includes physical progress (foundation, structure, finishing %), financial progress (amount collected, amount in escrow, amount withdrawn), customer complaints status, and any changes to the project plan. Filed within 7 days of quarter-end. Late filing reflects on the public portal and damages buyer confidence.

1% / 5% GST without ITC vs 12% with ITC — which scheme should I pick?

The 1% / 5% scheme (affordable / non-affordable residential) is simpler — no ITC tracking, lower customer-facing GST. The 12% scheme allows ITC on inputs but the headline GST is higher. Affordable housing project = mandatory 1%. Non-affordable residential = choice between 5% (without ITC) and 12% (with ITC). Commercial = 12% with ITC. The choice locks in for the project's life. Math: depends on input cost ratio. We model this for each specific project before launch.

Can I change GST scheme mid-project?

No. The scheme chosen at the time the project starts (or at the time the developer opted in for ongoing projects under the transition rules) is locked for the life of the project. Selecting wrong is a multi-year sales / margin issue. This is exactly why pre-launch GST modelling matters.

How does GST work on under-construction property sales?

Sale of flat before issuance of Completion Certificate (CC) is treated as supply of services and attracts GST at the chosen scheme rate. Sale after CC is treated as sale of immovable property — outside GST. The cut-off point is the issuance date of CC, not OC. This affects both timing of bookings and customer pricing strategy.

What is Joint Development Agreement (JDA) and how is it taxed?

JDA is an agreement where the landowner contributes land and the developer contributes construction, with revenue or area shared between them. Tax treatment: for the landowner, it triggers capital gains under Section 45(5A) — the gains are taxed in the year the developer receives the Completion Certificate, not in the year of agreement (this deferral is significant). For the developer, project costing includes land cost recognition. GST applies under reverse charge on land transfer.

What is Section 45(5A) for landowners under JDA?

Section 45(5A) of the Income Tax Act provides that when a landowner enters into a JDA, capital gains tax on the land transfer is deferred to the year in which the developer receives the Completion Certificate (CC) — not the year of the JDA. Stamp duty value on the date of CC determines the consideration. This deferral can be 3-5 years and is critical for landowner cash flow. Often missed by generalist CAs.

How should I structure a JDA — area share vs revenue share?

Area share — landowner gets specific units (say 30% of saleable area). Simpler to administer. Tax under Section 45(5A) on stamp duty value of those units. Revenue share — landowner gets % of project sales revenue. More flexible but requires clear sales tracking and complicates GST. The right structure depends on landowner's tax position, project cash-flow needs, and exit timeline. We model both before signing.

What is the 70% escrow rule under RERA?

Section 4(2)(l)(D) of RERA mandates that 70% of the amounts collected from buyers for a specific project must be deposited in a separate escrow account, used only for project construction and land cost. Withdrawals from this account require certification by an engineer, architect, and chartered accountant. Misuse triggers severe RERA penalties and possible criminal liability. We do the CA certification for these withdrawals.

How is project finance from a bank documented?

Bank/NBFC project loan typically requires: detailed project report, projected cash flows (monthly), cost estimate certified by architect/CA, BOQ, mortgage of project land, escrow account opening with the lending bank, monthly drawdown plan, periodic site inspection rights, and end-use certificates from a CA. We prepare all CA-certified documentation in the format the bank's regional office wants — not a generic version that gets rejected.

What is Ind AS 115 and does it apply to my real estate company?

Ind AS 115 — Revenue from Contracts with Customers — applies to companies preparing financials under Ind AS (typically listed entities, large unlisted entities, or those targeting an IPO). It changes revenue recognition for real estate from percentage-of-completion (Indian GAAP) to point-in-time recognition for most apartment sales (because performance obligations are typically satisfied at handover, not during construction). This shift can change reported revenue by 30-50% in early project years. If you are not Ind AS-applicable, current Indian GAAP percentage-of-completion continues.

Do I need a Tax Audit for my real estate company?

Yes — if turnover exceeds the Section 44AB thresholds (₹1 Cr generally; ₹10 Cr if cash transactions are below 5%). For Pvt Ltd companies, statutory audit under Companies Act is mandatory regardless. Tax Audit Report (Form 3CA/3CB + 3CD) covers project-wise revenue, expense classification, GST reconciliation, related party transactions. We do project-segment disclosure that satisfies both statutory and tax audit.

What happens at project closure — CC, OC, RERA closure, customer handover?

The closure sequence: (1) CC (Completion Certificate) from local authority — triggers GST cutoff and Section 45(5A) for landowners; (2) OC (Occupancy Certificate) — required for handover; (3) RERA project closure filing on portal; (4) Final escrow account closure with reconciled withdrawals; (5) Final project P&L and tax computations. Each step has documentation requirements. We hand over a complete closure pack.

Are buyers required to deduct TDS when paying me for property?

Yes — Section 194-IA: buyer must deduct 1% TDS on sale value above ₹50 lakhs (residential) when paying the developer. TDS is deposited via Form 26QB. As the developer, you receive the TDS certificate (Form 16B) and claim it against advance tax / final tax liability. We track this for every booking — both for buyer compliance support and for correct receivables reconciliation in your books.

Ready to Talk?

Book a free 60-minute project review.

Bring your project plan — RERA status, GST scheme, JDA structure, finance setup. We will map all four phases and flag every gap before they cost you.

Direct (CA Mitul Pujara)
Visit
A-309, Privilon, Iskcon Cross Road, Ahmedabad