20 December 2021
Respected Experts, We have a client engaged in constriction of Residential building. GST is paid as and when agreement is done with buyer. In case of GST, Turnover is on agreement basis. But how to show turnover in Income tax ? It should be same as per GST on agreement basis or on the basis of WIP ? is it allowed if turnover as per both acts differ ? Kindly guide.
20 December 2021
Under income tax the turnover should be based on WIP. GST turnover should be based on advance received. Yes, it's allowed if both turnover differ, for which reconciliation statement is prepared.
21 December 2021
Seems for accounting as well as for IT ,% of completion method (AS-7) is appropriate. The Real Estate (Regulation and Development) Act, 2016 compliance has also to be considered.
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