Real Estate & Construction
Construction businesses run on contracts and projects that span several years. Revenue, costs and taxes have to be tracked project by project, and the GST and TDS rules differ depending on what is being built and for whom.
What we help with
- Project-wise accounting and contract costing
- GST on works contracts and on sale of under-construction property
- TDS on contractor payments and on purchase of property
- Audit, income tax and documentation for bank and RERA filings
Points to watch
- 1GST treatment depends on the type of project and contract; it is worth confirming before pricing a contract.
- 2Buyers of immovable property above the prescribed value must deduct TDS on the payment.
- 3Real estate projects above the prescribed size generally need registration with the state RERA before marketing.
- 4Advances received and work billed should be tracked against each project to avoid tax timing errors.
General points, not advice for your case. Limits and dates change; we confirm what applies to you.
Project-by-project accounting
Construction contracts and real estate projects run for months or years. Revenue, costs, advances and retention money need to be tracked for each project separately, so that profit is recognised in the right year and each project’s position is clear to partners and banks.
GST on construction
GST treatment depends on what is being built and for whom: a works contract for a business client, a government contract, or the sale of an under-construction flat to a home buyer can each be treated differently, sometimes with options to choose between rates with and without input tax credit. Confirm the treatment before pricing a contract or a project, because it is hard to change later.
TDS on both sides
Construction businesses deal with TDS in both directions.
- Payments you make to sub-contractors and professionals usually require TDS.
- Clients deduct TDS from your bills, which you claim as a credit only if it appears in Form 26AS.
- When property is sold above the prescribed value, the buyer deducts TDS on the payment.
RERA and documentation
Real estate projects above the prescribed size generally need registration with the state real estate regulatory authority before they are advertised or sold, with separate project accounts and periodic certificates from professionals. Keeping project accounts clean from the start makes these certificates straightforward.
Running a business in real estate & construction?
Call during office hours, or send a WhatsApp message describing what you need.
- No documents needed for the first call
- Hindi or English