🏗️ Building a Project? GST on Construction, TDS on Land Deals and RERA Compliance Can Derail Your Entire Schedule.
Real estate is one of the most complex sectors for taxation in India. Joint development agreements, GST on under-construction flats, TDS on property purchases, RERA escrow accounts — every transaction carries a compliance obligation that, if missed, becomes a liability.
Y M Shah & Co. advises builders, developers, land owners and property investors on every aspect of real estate taxation and RERA compliance.
GST & Tax Challenges in Real Estate
Real estate transactions sit at the intersection of GST, income tax, stamp duty and RERA — each governed by different rules, rates and timelines.
- GST on under-construction residential flats — 1% (affordable) or 5% (others) without ITC
- GST on commercial construction — 12% with ITC applicable
- Joint Development Agreements (JDA) — GST implications for landowner and developer
- TDS on property purchase — Section 194IA, 1% TDS on properties above ₹50 lakh
- TDS on payments to NRI sellers — Section 195, 20-30% TDS on capital gain
- Long-term capital gains tax — Section 54 reinvestment exemptions and indexation
- GST on transfer of development rights (TDR/FSI) — taxable supply at 18%
- RERA registration, quarterly progress reporting and escrow account compliance
Our CA Services for Builders, Developers & Property Investors
From land acquisition to project completion and sale — we provide complete tax and compliance advisory throughout your project lifecycle.
- 📋 RERA registration — project registration, quarterly updates and compliance
- 🏢 GST structuring — choosing the right GST model for your project type
- 📄 JDA tax planning — minimising GST and income tax on joint development transactions
- 💼 TDS compliance — Section 194IA, 194IC deduction and Form 26QB filing
- 📊 Project accounts and construction-stage ITC tracking
- 🔍 Statutory audit for construction companies and real estate firms
- ⚖️ GST litigation — defending SCNs on classification, rate or ITC disputes
- 💰 Capital gains planning — Section 54, 54F, 54EC reinvestment and bond advisory
Common Tax Mistakes in Real Estate (That Cost Lakhs Later)
These are the most frequent compliance errors we see in real estate — every one of them preventable.
- Not filing Form 26QB — TDS deducted but not deposited on property purchase
- Claiming ITC on residential construction — blocked credit under Section 17(5)
- Wrong GST rate applied — treating affordable housing as commercial or vice versa
- JDA not structured correctly — GST triggered at wrong stage or wrong value
- RERA quarterly returns missed — penalty up to 5% of project cost
- Capital gains not planned — missed Section 54 window due to wrong transaction sequence
Why Real Estate Professionals Trust Y M Shah & Co.
- ⭐ Advised on 50+ real estate projects — residential, commercial and mixed-use
- ⭐ RERA compliance expertise — registration, quarterly filings and escrow management
- ⭐ JDA structuring experience — protecting both landowner and developer interests
- ⭐ Capital gains planning — maximising exemptions under Sections 54, 54F and 54EC
- ⭐ Available on WhatsApp — quick answers when your deal timeline is tight
“Our developer had been paying GST at the wrong rate for 2 years. Y M Shah & Co. filed for rectification, got a full credit and restructured our future projects correctly.” — Property Developer, Vadodara
Have a Real Estate Tax Question? Let's Talk.
From RERA registration to capital gains planning — we cover everything a builder, developer or investor needs.
📞 +91 9033231693 | ✉️ haard@ymshah.com