Accounting treatment for sale of flat

In case of construction contracts whenever the builder receives the amount from the flat holders, it should be credited to the flat holders account.   When all the work in respect of the particular flat is being completed & the builder is about to handover the possession of the flat to the holder of flat then the following entry needs to be passed in the books of the builder to book the income:

Flat holder’s A/c   Dr.

To- Sale A/c

After posting the above entry verify that if there is any balance remaining to the flat holders account either debit or credit.  If its credit then there is an excess amount collected from the holder which needs to be refunded or the sale might have been booked incorrectly.

If it is a debit balance then there is an amount receivable from the holder.

AS9 would be not be applicable in case of construction contracts.  Real estate would not be applicable in your case, as the land is not belonging to the builder.

Can we use AS 7 Construction Contract ie, percentage of completion method for income recognition? If no, then what should be the appropriate treatment?

Sir I had booked a flat in Jaipur(Affordable housing)  and I have given the 10 percent amount through cheque I had given the cheque 28 march 2019 and my agreement to sale was in 24 May 2019 thereafter the cheque is cleared in 24 April 2019. As per the tax liability of GST. Which percent tax is applicable for this condition because as per the updated GST tax rate has been reduce by 8 percent to 1 percent. 

Work in progress refers to costs due from the customer on account of such costs relating to the future activity on a contract.

Thus, these contract costs are recognized as an asset, provided it is expected that such costs will be recovered.

If you can reliably estimate revenue, then go for stage of completion

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