Industry

Real Estate & Construction.

Name: Anil Arora & Co.
Address: First Floor, K-359, opp. Water Tank, near Emerald Mall, Ashiyana Colony, Sector K, LDA Colony, Lucknow, Uttar Pradesh, 226012, IN
Telephone: +91 522 407 1089

RERA, project-wise revenue recognition under Ind AS 115, JDAs, sub-vention schemes, and GST on under-construction property for developers and contractors.

Sector context

The regulatory landscape, the compliance rhythm, and the questions that come up at audit.

Anil Arora & Co. works with developers, contractors, and landowners across north India, in a sector that sits at the intersection of three regulators — the state RERA authority, the GST department, and the income-tax department — each with its own reporting cadence and definition of a "project". The Real Estate (Regulation and Development) Act 2016 governs project registration, escrow discipline (70% of buyer collections in a separate account), advertising restrictions, and quarterly progress reporting on the state RERA portal. Revenue recognition for developers follows Ind AS 115 on a project-by-project basis, with input-cost matching, contract modifications, and the percentage-of-completion conversation rarely settled in a single audit cycle.

The friction points are well-known to anyone who has run a project: GST on under-construction property at 1% (affordable) or 5% (other residential) without input tax credit versus 12% with ITC for commercial; sub-vention schemes and their characterisation for both GST and income-tax purposes; joint-development agreements (JDAs) and the deemed-transfer trigger under Section 45(5A) of the Income-tax Act; TDS under Section 194-IA on property purchases above the threshold; and the recognition timing for landowner-share flats.

How we help

Specific touch-points for real estate & construction.

The bullets below describe recurring service touch-points in this sector. An engagement typically draws from a subset; we scope the right combination once we understand the business.

RERA registration assistance, quarterly progress updates on the state portal, and escrow-account compliance reviews
Project-wise revenue recognition under Ind AS 115 — cost-to-cost, contract-modification, and significant-financing-component analysis
GST advisory on the 1% / 5% / 12% rate structure for under-construction property and the ITC-versus-no-ITC election
Joint-development agreement (JDA) structuring and capital-gains computation under Section 45(5A) of the Income-tax Act
Sub-vention scheme tax treatment for both the developer and the buyer, including TDS implications
Section 194-IA TDS compliance on property purchases and Form 26QB filing support
Statutory audit of developer entities, contractors, and SPVs — including consolidated reporting where group structures apply
Liaison with bankers on project funding, draw-down certifications, and RERA-mandated chartered-accountant certificates