1. REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
FORM – 3
Chartered Accountant’s Certificate
As amended on 31st May 2019

2. FORM 3
Amendment

3. RERA
Form 3 Under RERA
Changes brought in through Amendment 5 of the Regulations
Gujarat RERA2019/Gen.Reg./Amdt 5. dated 31st May 2019
The certificates to be issued by the project architect, project engineer, chartered accountant in practice
appointed by the promoter,
for project Registration/Alteration/Extension, Quarterly Project Progress Report and for withdrawal of money from the separate account maintained under section 4(2) (l) (D) shall be in Form 1, 2 and 3 respectively.
The Form 3 shall be submitted electronically on GujRERA Portal.
The certifying professional has to affix his digital signature using utility on GujRERA portal accordingly.
The electronic submission of these forms shall be applicable when the same is made available on GujRERA Portal.” (From 8th June 2019)
Form 2 and Form 3 have been substituted and new formats have been notified.

4. FORM 3
UNDERSTANDING THE FORMAT

5. Format FORM 3 (See Regulation 3)
CHARTERED ACCOUNTANTS CERTIFICATE (On Letter Head)
(FOR REGISTRATION OF A PROJECT AND SUBSEQUENT WITHDRAWL OF MONEY)
Cost of Real Estate Project GujRERA Registration No: PR/GJ/_________________
Project Name
Sr. No
Particulars
Amount (in Rs.)
Estimated
Incurred & Paid
(Column - A)
(Column - B) 1
(i)
Land Cost: a
Acquisition Cost of Land * or Development Rights, lease Premium, lease rent, interest cost incurred or payable on Land Cost and legal cost  - - b
Amount of Premium payable to obtain development rights, FSI, additional FSI, fungible area and any other incentive under DCR from Local Authority or State Government or any Statutory Authority c
Acquisition cost of TDR (if any) d
Amounts payable to State Government or competent authority or any other statutory authority of the State or Central Government towards stamp duty, transfer charges, registration fees etc. e
Land Premium payable as per annual statement of rates (ASR) for redevelopment of land owned by Public Authorities. f
Under Redevelopment / Rehabilitation Scheme:
Estimated construction cost of redevelopment / rehab building including site development and infrastructure for the same as certified by Engineer (in Column-A)
(ii)
Actual Cost of construction of redevelopment / rehab building incurred as per the books of accounts as verified by the CA (in Column-B) Note: (for total cost of construction incurred, Minimum of (i) or (ii) is to be considered)

6. Use of Market Value as a measure of Cost Incurred and Paid
Rule 3 (6) of General Rules - The promoter shall disclose,-
estimated cost of real estate project as envisaged by the promoter by bifurcating the same into the market value of the land/ lease charges (as determined by the Government Approved Valuer).
When will a promoter opt to disclose market value of land?
S S Bhansali & Co
Chartered Accountants
FORM 3
Format
FORM 3
(See Regulation 3)
CHARTERED ACCOUNTANTS CERTIFICATE (On Letter Head)
(FOR REGISTRATION OF A PROJECT AND SUBSEQUENT WITHDRAWL OF MONEY)
Cost of Real Estate Project GujRERA Registration No: PR/GJ/_________________
Project Name
Sr. No
Particulars
Amount (in Rs.)
Estimated
Incurred & Paid
(Column - A)
(Column - B) 1
(i)
Land Cost: a
Acquisition Cost of Land or Development Rights, lease Premium, lease rent, interest cost incurred or payable on Land Cost and legal cost  - - b
Amount of Premium payable to obtain development rights, FSI, additional FSI, fungible area and any other incentive under DCR from Local Authority or State Government or any Statutory Authority c
Acquisition cost of TDR (if any) d
Amounts payable to State Government or competent authority or any other statutory authority of the State or Central Government towards stamp duty, transfer charges, registration fees etc. e
Land Premium payable as per annual statement of rates (ASR) for redevelopment of land owned by Public Authorities. f
Under Redevelopment / Rehabilitation Scheme:
Estimated construction cost of redevelopment / rehab building including site development and infrastructure for the same as certified by Engineer (in Column-A)
(ii)
Actual Cost of construction of redevelopment / rehab building incurred as per the books of accounts as verified by the CA (in Column-B) Note: (for total cost of construction incurred, Minimum of (i) or (ii) is to be considered)
Sr. No
Particulars
Amount (in Rs.)
Estimated
Incurred & Paid
(Column - A)
(Column - B) 1
(i)
Land Cost: a
Acquisition Cost of Land * or Development Rights, lease Premium, lease rent, interest cost incurred or payable on Land Cost and legal cost  - -
Acquisition Cost of Land to be “Indexed cost of Acquisition” [Circular 2] OR
“Prevailing ASR Value” [Circular 11] OR
“Market Value of the land/lease charges – as determined by the Government Approved Valuer”
Analysis:
Circular 2 brought in optional indexation of land,
Circular 11 stated that ASR/Jantri Rates or Indexed Cost of land whichever is higher.
Now, regulation has also allowed Market Value and left selection of either of the 3 at the option of the promoter.
Also, does this mean that either of these 3 options have to be exercised?

7. Format No Change FORM 3 (See Regulation 3)
CHARTERED ACCOUNTANTS CERTIFICATE (On Letter Head)
(FOR REGISTRATION OF A PROJECT AND SUBSEQUENT WITHDRAWL OF MONEY)
Cost of Real Estate Project GujRERA Registration No: PR/GJ/_________________
Project Name
Sr. No
Particulars
Amount (in Rs.)
Estimated
Incurred & Paid
(Column - A)
(Column - B) 1
(i)
Land Cost: a
Acquisition Cost of Land * or Development Rights, lease Premium, lease rent, interest cost incurred or payable on Land Cost and legal cost  - - b
Amount of Premium payable to obtain development rights, FSI, additional FSI, fungible area and any other incentive under DCR from Local Authority or State Government or any Statutory Authority c
Acquisition cost of TDR (if any) d
Amounts payable to State Government or competent authority or any other statutory authority of the State or Central Government towards stamp duty, transfer charges, registration fees etc. e
Land Premium payable as per annual statement of rates (ASR) for redevelopment of land owned by Public Authorities. f
Under Redevelopment / Rehabilitation Scheme:
Estimated construction cost of redevelopment / rehab building including site development and infrastructure for the same as certified by Engineer (in Column-A)
(ii)
Actual Cost of construction of redevelopment / rehab building incurred as per the books of accounts as verified by the CA (in Column-B) Note: (for total cost of construction incurred, Minimum of (i) or (ii) is to be considered)
No Change

8. FORM 3
Format
Option to Tick (Yes) in case of Redevelopment/Rehabilitation Scheme has been made available.
The estimated cost of redevelopment entered into here would be reduced from ii a (i) – Estimated Cost of Construction as certified by Engineer.
Where redevelopment has been reported in Annexure A, this filed is automatically taken as Yes.
The option to provide details in Estimated column is provided one time only and non changeable once submitted.
FORM 3
(See Regulation 3)
CHARTERED ACCOUNTANTS CERTIFICATE (On Letter Head)
(FOR REGISTRATION OF A PROJECT AND SUBSEQUENT WITHDRAWL OF MONEY)
Cost of Real Estate Project GujRERA Registration No: PR/GJ/_________________
Project Name
Sr. No
Particulars
Amount (in Rs.)
Estimated
Incurred & Paid
(Column - A)
(Column - B) 1
(i)
Land Cost: a
Acquisition Cost of Land or Development Rights, lease Premium, lease rent, interest cost incurred or payable on Land Cost and legal cost  - - b
Amount of Premium payable to obtain development rights, FSI, additional FSI, fungible area and any other incentive under DCR from Local Authority or State Government or any Statutory Authority c
Acquisition cost of TDR (if any) d
Amounts payable to State Government or competent authority or any other statutory authority of the State or Central Government towards stamp duty, transfer charges, registration fees etc. e
Land Premium payable as per annual statement of rates (ASR) for redevelopment of land owned by Public Authorities. f
Under Redevelopment / Rehabilitation Scheme:
Estimated construction cost of redevelopment / rehab building including site development and infrastructure for the same as certified by Engineer (in Column-A)
(ii)
Actual Cost of construction of redevelopment / rehab building incurred as per the books of accounts as verified by the CA (in Column-B) Note: (for total cost of construction incurred, Minimum of (i) or (ii) is to be considered)
Redevelopment Example: Existing Society with 50 units – Additional 50 units are to be built. Cost of construction will be split 50:50 if all units are equal. Cost can be divided on the basis of constructed area or any appropriate method. f
Under Redevelopment / Rehabilitation Scheme:
(i)
Estimated construction cost of redevelopment / rehab building including site development and infrastructure for the same as certified by Engineer (in Column-A) -
(ii)
Actual Cost of construction of redevelopment / rehab building incurred as per the books of accounts as verified by the CA (in Column-B) Note: (for total cost of construction incurred, Minimum of (i) or (ii) is to be considered)
Applicable | Yes/No

9. Sub-Total of Development Cost
FORM 3
Format
(iii)
Cost towards clearance of land of all or any encumbrances including cost of removal of legal/illegal occupants, cost for providing temporary transit accommodation or rent in lieu of Transit Accommodation, overhead cost. -
(iv)
Cost of ASR linked premium, fees, charges and security deposits or maintenance deposit, or any amount whatsoever payable to any authorities towards and in project of rehabilitation.
Sub-Total of Land Cost
(ii)
Development Cost/Cost of Construction:
a (i)
Estimated Cost of Construction as certified by Engineer (Column - A) - 
a (ii)
Actual Cost of Construction incurred as per the books of accounts as verified by the CA (Column - B) Note: (for adding to total cost of construction incurred, Minimum of (i) or (ii) is to be considered)
a (iii)
On-site expenditure for development of entire project excluding cost of construction as per (i) or (ii) above, i.e. salaries, consultants fees, site overheads, development works, cost of services (including water, electricity, sewerage, drainage, layout roads etc.), cost of machineries and equipment including its hire and maintenance costs, consumables etc. All costs directly incurred to complete the construction of the entire phase of the project registered.  - b
Payment of Taxes, cess, fees, charges, premiums, interest etc. to any Statutory Authority. c
Interest payable to financial institutions, scheduled banks, non-banking financial institution (NBFC) or money lenders on construction funding or money borrowed for construction:
Sub-Total of Development Cost

10. FORM 3
Format 2
Total Estimated Cost of the Real Estate Project (1 (i) + 1 (ii) of Estimated Column –A
100 3
Total Cost Incurred and Paid of the Real Estate Project (1 (i) + 1 (ii) of Incurred Column - B 60 4
Percentage of completion of Construction Work (as per Project Architect’s Certificate on completion of project)
N/A 5
Proportion of the Cost incurred on Land Cost and Construction Cost to the Total Estimated Cost.(3/2)
60% 6
Amount which can be withdrawn from the Designated Account Total Estimated Cost *Proportion of cost incurred and paid (Sr. number 2 x Sr. number 5) 7
Less:
Amount withdrawn till date of this certificate as per the Books of Accounts and Bank Statement 14 8
Net Amount which can be withdrawn from the Designated Bank Account under this certificate. 46
This certificate is being issued for RERA compliance for the company (Promoter's Name_________) for the project name_________ and is based on the records and documents produced before me and explanations provided to me by the management of the Company; based on the verification of books of accounts till _________.
Yours Faithfully,
Name Chartered Accountant:
For Name of CA Firm:
Partner/Proprietor Membership No:
COP Date:
Place:

11. Format Details of Project Loan and Lenders: Lender Name
Amount of Loan taken for Project as per Agreement (INR)
Sanctioned Amount
Loan Agreement
<Attachment>
Loan Disbursal Received (INR)
Disbursed Amount
Mortgage Deed
Loan Repaid (INR)
Principal Repaid
Total Number of Project Units Mortgaged:*
Should not be more than units as per Annexure A
Balance of Loan (Out Standing) (INR)
Principal Outstanding
Details of RERA Account: 
Bank Name
Branch Name
Account No.
Account Name:
<Firm Name> RERA Account for <Project Name> Real Estate Project
IFSC Code
Opening Balance
<Closing Balance of last Quarter>
Opening Balance Date
<Closing Balance Date of Previous Quarter>
Deposit during the period
Withdrawals during the period
Closing Balance
Closing Balance Date
State

12. (ADDITIONAL INFORMATION FOR ONGOING PROJECTS)1
Estimated Balance Cost to Complete the Real Estate Project
(Difference of Total Estimated Project cost less Cost incurred) 40 2
Balance amount of receivables from sold apartments as per Annexure-A to this certificate
(as certified by Chartered Accountant as verified from the records And books of Accounts) 10 3
(i)
Balance Unsold area to be certified by Management and to be verified by CA from the records and books of accounts
12,000
(ii)
Estimated amount of sales proceeds in respect of unsold apartments as per Annexure-A to this certificate.
110 4
Estimated receivables of ongoing project. Sum of (ii)
120 5
Amount to be deposited in Designated Account – 70% or 100% If 4 is greater than 1, then 70% of the balance receivables of Ongoing project will be deposited in designated Account. If 4 is lesser than 1, then 100% of the balance receivables of Ongoing project will be deposited in designated Account.
70%
This certificate is being issued for RERA compliance for the company (Promoter's Name_________) for the project name_________ and is based on the records and documents produced before me and explanations provided to me by the management of the Company; based on the verification of books of accounts till (date) _________.

13. FORM 3
Format
The physical progress of the project as certified by the architect (Form-1) and engineer (Form 2) seems in coherence with actual expenditure incurred & paid considering project specification:
Yes No
If NO
The variation is on account of the following reasons provided by the Promoter of the project. 1.
Analysis: Prima Facie or material lack of coherence between Form 1, 2 and Incurred and Paid needs to be reported by CA. The reason for Non-Coherence should be provided by the promoter.
Yours Faithfully,
Name Chartered Accountant:
For Name of CA Firm:
Partner/Proprietor Membership No:
UDI Number:
CA FRN Number:
CA Designation:
Notes to Certificate:
COP Date:
Place:

14. FORM 3
Format – Annexure A
Statement for calculation of Receivables from the Sales of the Ongoing Real Estate Project
Booked Inventory
Sr. No
Block/Type/Bunglow/Category (as per form 1)
Flat/Bunglow/Office No/ Plot No
Carpet Area (in Sq. Mts.)
Area of Exclusive Balcony/Verrandah (sq Mts.)
Unit Consideration as per Agreement/Letter of Allotment
Received Amount
Balance Amount
Total - 30 20 10
Total Proposed
Total Booked
No. of Garages
No. of Covered Parking
No. of Open Parking
(Unbooked Inventory Valuation)
Of the Residential/commercial premises Rs.______ per sm.
Estimated amount of Sales Proceeds
12000
1000
110
OLD ANNEXURE

15. AREA OF EXCLUSIVE BALCONY
FORM 3
Format – Annexure A
SAME AS OLD ANNEXURE
Heads->
BLOCK TYPE
FLAT/BUNGLOW/OFFICE
USAGE
CARPET AREA
AREA OF EXCLUSIVE BALCONY
STATUS
UNIT
AMOUNT
RECEIVED
Explanation
Same as Blocks entered
Unit Number
Residential/
Shop/ Office/
Others
In Sq. M
BOOKED/
UNBOOKED
INR Amount
Editable? No
Any time
Example A
101
Residential
45.5
2.3
BOOKED
50,00,000
6,00,000

16. Format – Annexure A NEW PART OF ANNEXURE Heads-> DATE OF
AGREEMENT OF SALE
ENCUMBRANCE
STATUS
ALLOTTEE
NAME
TYPE OF KYC
KYC UNIQUE ID
MOBILE NO OF ALLOTTEE
REDEVELOPMENT
Understanding
Date of
Agreement of
Sale executed
Status of
Encumbrance
Name of
Allottee
Standard KYC
KYC unique ID
Mobile number of allottee in
Whether the Unit is being developed under "Redevelopment
Rehabilitation"
Allowed
Values/
Format
<DD/MM/YYYY>
For BOOKED
UNITS ONLY No
Encumbrance/
Created/
Released
(PAN, AADHAR,
DRIVING
LICENSE,
PASSPORT)
PAN Format
(<5Alpha><4Digit><1Alpha>),
Aadhar Format (<12 Digits>),
Driving License Format
(<2Alpha><13Digits>),
Passport Format
(<1Alpha><7Digits>)
For BOOKED UNITS ONLY
10 digit Mobile
Number
YES NO
Units must be
"BOOKED" only
Editable?
Any time
Example
Created
ALKA S PATEL
AADHAR

17. FORM 3
DEFINING ROLES AND DECODING THE FORM

18. BREAKING THE Form 3 UP Promoter/Auditor’s Experts Chartered Accountant
RERA
BREAKING THE Form 3 UP
FORM 3
(See Regulation 3)
CHARTERED ACCOUNTANTS CERTIFICATE (On Letter Head)
(FOR REGISTRATION OF A PROJECT AND SUBSEQUENT WITHDRAWL OF MONEY)
Cost of Real Estate Project GujRERA Registration No: PR/GJ/_________________
Project Name
Sr. No
Particulars
Amount (in Rs.)
Estimated
Incurred & Paid
(Column - A)
(Column - B) 1
(i)
Land Cost: a
Acquisition Cost of Land * or Development Rights, lease Premium, lease rent, interest cost incurred or payable on Land Cost and legal cost  - - b
Amount of Premium payable to obtain development rights, FSI, additional FSI, fungible area and any other incentive under DCR from Local Authority or State Government or any Statutory Authority c
Acquisition cost of TDR (if any) d
Amounts payable to State Government or competent authority or any other statutory authority of the State or Central Government towards stamp duty, transfer charges, registration fees etc. e
Land Premium payable as per annual statement of rates (ASR) for redevelopment of land owned by Public Authorities. f
Under Redevelopment / Rehabilitation Scheme:
Estimated construction cost of redevelopment / rehab building including site development and infrastructure for the same as certified by Engineer (in Column-A)
(ii)
Actual Cost of construction of redevelopment / rehab building incurred as per the books of accounts as verified by the CA (in Column-B) Note: (for total cost of construction incurred, Minimum of (i) or (ii) is to be considered)
Promoter/Auditor’s Experts
Chartered Accountant

19. BREAKING THE Form 3 UP Auto Filled Chartered Accountant 2
Total Estimated Cost of the Real Estate Project (1 (i) + 1 (ii) of Estimated Column –A
100 3
Total Cost Incurred and Paid of the Real Estate Project (1 (i) + 1 (ii) of Incurred Column - B 60 4
Percentage of completion of Construction Work (as per Project Architect’s Certificate on completion of project)
N/A 5
Proportion of the Cost incurred on Land Cost and Construction Cost to the Total Estimated Cost.(3/2)
60% 6
Amount which can be withdrawn from the Designated Account Total Estimated Cost *Proportion of cost incurred and paid (Sr. number 2 x Sr. number 5) 7
Less:
Amount withdrawn till date of this certificate as per the Books of Accounts and Bank Statement 14 8
Net Amount which can be withdrawn from the Designated Bank Account under this certificate. 46
Auto Filled
Chartered Accountant
This certificate is being issued for RERA compliance for the company (Promoter's Name_________) for the project name_________ and is based on the records and documents produced before me and explanations provided to me by the management of the Company; based on the verification of books of accounts till _________.
Yours Faithfully,
Name Chartered Accountant:
For Name of CA Firm:
Partner/Proprietor Membership No:
COP Date:
Place:

20. BREAKING THE Form 3 UP Chartered Accountant
Details of Project Loan and Lenders:
Lender Name
Amount of Loan taken for Project as per Agreement (INR)
Sanctioned Amount
Loan Agreement
<Attachment>
Loan Disbursal Received (INR)
Disbursed Amount
Mortgage Deed
Loan Repaid (INR)
Principal Repaid
Total Number of Project Units Mortgaged:*
Should not be more than units as per Annexure A
Balance of Loan (Out Standing) (INR)
Principal Outstanding
Details of RERA Account: 
Bank Name
Branch Name
Account No.
Account Name:
<Firm Name> RERA Account for <Project Name> Real Estate Project
IFSC Code
Opening Balance
<Closing Balance of last Quarter>
Opening Balance Date
<Closing Balance Date of Previous Quarter>
Deposit during the period
Withdrawals during the period
Closing Balance
Closing Balance Date
State

21. (ADDITIONAL INFORMATION FOR ONGOING PROJECTS)
Auto Filled
BREAKING THE Form 3 UP
(ADDITIONAL INFORMATION FOR ONGOING PROJECTS) 1
Estimated Balance Cost to Complete the Real Estate Project
(Difference of Total Estimated Project cost less Cost incurred) 40 2
Balance amount of receivables from sold apartments as per Annexure-A to this certificate
(as certified by Chartered Accountant as verified from the records And books of Accounts) 10 3
(i)
Balance Unsold area to be certified by Management and to be verified by CA from the records and books of accounts
12,000
(ii)
Estimated amount of sales proceeds in respect of unsold apartments as per Annexure-A to this certificate.
110 4
Estimated receivables of ongoing project. Sum of (ii)
120 5
Amount to be deposited in Designated Account – 70% or 100% If 4 is greater than 1, then 70% of the balance receivables of Ongoing project will be deposited in designated Account. If 4 is lesser than 1, then 100% of the balance receivables of Ongoing project will be deposited in designated Account.
70%
This certificate is being issued for RERA compliance for the company (Promoter's Name_________) for the project name_________ and is based on the records and documents produced before me and explanations provided to me by the management of the Company; based on the verification of books of accounts till (date) _________.

22. BREAKING THE Form 3 UP Chartered Accountant Promoter
The physical progress of the project as certified by the architect (Form-1) and engineer (Form 2) seems in coherence with actual expenditure incurred & paid considering project specification:
Yes No
If NO
The variation is on account of the following reasons provided by the Promoter of the project. 1.
Chartered Accountant
Yours Faithfully,
Name Chartered Accountant:
For Name of CA Firm:
Partner/Proprietor Membership No:
UDI Number:
CA FRN Number:
CA Designation:
Notes to Certificate:
COP Date:
Place:
Promoter

23. AREA OF EXCLUSIVE BALCONY
FORM 3
BREAKING THE Form 3A UP
Promoter/Auditor’s Experts
CA – Verified from A2S/Allotment Letter
Heads->
BLOCK TYPE
FLAT/BUNGLOW/OFFICE
USAGE
CARPET AREA
AREA OF EXCLUSIVE BALCONY
STATUS
UNIT
AMOUNT
RECEIVED
Example A
101
Residential
45.5
2.3
BOOKED
50,00,000
6,00,000
CA – Verified from Books of Accounts
Heads->
DATE OF
AGREEMENT OF SALE
ENCUMBRANCE
STATUS
ALLOTTEE
NAME
TYPE OF KYC
KYC UNIQUE ID
MOBILE NO OF ALLOTTEE
REDEVELOPMENT
Example
Created
ALKA S PATEL
AADHAR NO
CA – Verified from A2S
CA – Verified from Mortgage Deed
CA – Verified from A2S/Allotment Letter and KYC
Promoter

24. FORM 3
ONLINE FILING AND ESIGNING

25. uploading Annexure A Annexure A is the starting point.
FORM 3
uploading Annexure A
Annexure A is the starting point.
New Template can be downloaded or last uploaded annexure may also be downloaded.

26. FORM 3
Summary – Annexure A

27. Precautions – Annexure A
FORM 3
Precautions – Annexure A
Error in Row number 1 means error in Row 2 of your excel uploaded file
Number of units should be same as total units in Commencement Certificate
“Amounts received” should tally with the ledger balances of the allottees
AFS should be registered where amount received in greater than 10%
Mortgaged Units cannot be more than total units of the project
Allottee name should be same as in allotment letter/Agreement to Sale
In case of joint allotment, KYC, name and mobile number of 1st Allottee is to be added

28. Certificate – Land Cost
FORM 3
Certificate – Land Cost

29. Certificate – Other Than Redevelopment
FORM 3
Certificate – Other Than Redevelopment

30. Certificate – Redevelopment
FORM 3
Certificate – Redevelopment

31. FORM 3
CA Certificate

32. FORM 3
CA Certificate

33. FORM 3
CA Certificate

34. FORM 3
CA Certificate

35. FORM 3
CA Certificate

36. FORM 3
CA Certificate - Loans

37. CA Certificate – Bank details
FORM 3
CA Certificate – Bank details

38. CA Certificate – Additional Information

39. CA Certificate – Coherence
FORM 3
CA Certificate – Coherence

40. CA Certificate – Not in Coherence
FORM 3
CA Certificate – Not in Coherence

41. CA Certificate – Submission
FORM 3
CA Certificate – Submission

42. Preview is not available for Quarterly Return.
FORM 3
Technical Changes
Auto Fetching of Bank Account details from project alteration application
For Redevelopment – One time data entry in “Estimate Column” shall be allowed
There is no option of revision – Hardcopy representations will not be entertained
Once CA certificate is E-signed, block submission details, Form 1,2 and 3 and Annexure shall be locked for editing.
Preview is not available for Quarterly Return.

43. TECHNICAL
GUIDE

44. Decoding the TECHNICAL Guide
RERA
Decoding the TECHNICAL Guide
CA Certificate is the last in the sequence of the certificates to be issued for withdrawal of funds. (Chapter 3, Part 1, 2.0)
There is no legal requirement that the same CA should issue subsequent certificates for withdrawal from bank (Chapter 3, Part 1, 1.4)
The protection under SA-620 (Using the work of an Auditor’s Expert) shall be available only to the extent of “estimate of total project cost”. The CA cannot claim protection for areas of certificate falling under “accounting and auditing”. (Chapter 3, Part 1, 2.1 and 2.2)
The ultimate purpose of the Act in adoption of the concept of percentage of completion of work is to protect the interest of the buyers of real estate by ensuring that the promoter gets to withdraw only so much from the amounts collected from allottees, as is commensurate with the progress of work achieved. (Chapter 3, Part 1, 3.4)
Land Value: Promoter is allowed to withdraw actual cost or present fair market value of the land, whichever is higher (Chapter 3, Part 1, 4.2.1)
Construction and Development Costs: Material, Labour, Cost of Hiring or depreciation on Plant and Machinery, fees for obtaining permissions, design and technical charges, rectification and warranty costs, claims from 3rd parties. (Chapter 3, Part 1, 4.3)

45. Decoding the TECHNICAL Guide
RERA
Decoding the TECHNICAL Guide
Costs not considered as part of construction costs (Chapter 3, Part 1, 6.0)
General Administrative cost
Selling Costs
R&D Costs
Depreciation on Idle P&M
Costs of unconsumed material delivered at site
Advance payment
Remuneration/interest on partners capital
Word of Caution: Capitalization of interest
Note: “In the absence of information about capitalisation of interest as part of cost of assets, the element of interest to be capitalised, if any, has not been considered in the project cost incurred though it is part of the total project cost incurred”

46. Decoding the TECHNICAL Guide
RERA
Decoding the TECHNICAL Guide
Approach for certification (Chapter 3, Part 1, 10.0)
Receive from the promoter the necessary particulars of the costs incurred and estimated.
Receive certificates issued by the engineer and the architect
Reconcile the difference, if any, in the extent of work completed as certified by the engineer and the architect
Point out to the promoter the issues emerging from the reconciliation and get the fresh data after corrective action is taken
Accept the data as being correct, in the absence of reasons to believe otherwise. Document the analysis of the data and reasons which lent prima facie credibility to the data.
Work out the proportion that the project costs incurred up to a particular date bear to the estimated project cost. Express the proportion in terms of percentage

47. Decoding the TECHNICAL Guide
RERA
Decoding the TECHNICAL Guide
Working Papers (Chapter 3, Part 1, 13.0)
a letter of engagement stating the nature of certificate required and the purpose for which it will be used
the relevant particulars, duly certified by the promoter to be true, received from him regarding the land cost and the cost of construction incurred during the period covered by the certificate as also the particulars to show cumulative land cost and the cost of construction incurred up to the date of the certificate;
working showing the manner of attribution of expenditure on interest to the project, that it is in accordance with the applicable AS, if any;
the certificates issued by the engineer and the architect;
a note on assumptions, if any made while issuing certificate with reasons;
a note giving reasons why any evidence is accepted or rejected or why any term or expression is given a particular meaning, etc.

48. Project Life Cycle
SCENARIOS

49. Scenario 1 – Prior to Amendment
FORM 3
Scenario 1 – Prior to Amendment
Project Duration – 1.5 years
ASR Land Cost – ` 5 crores
Construction Cost – ` 15 crores
Total Cost – ` 20 crores
Expected Revenue – ` 70 crores
Since land cost is a small fraction of the total project sales value, amount collected from allottees was blocked in RERA account until BU was received.
Quarter
Nov-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Cost 5 10 14 16 20
Sales 7 25 40 70
Withd. Limit
1.5
0.1
(7.5)
(14)
(54)
(29)

50. Scenario 1 – After Amendment
FORM 3
Scenario 1 – After Amendment
Project Duration – 1.5 years
Market Value of Land– ` 35 crores
Construction Cost – ` 15 crores
Total Cost – ` 50 crores
Expected Revenue – ` 70 crores
Since market value of land is now considered amount collected from allottees shall not remain blocked in RERA account until BU was received.
Quarter
Nov-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Cost 35 40 44 46 50
Sales 5 7 25 70
Withd. Limit
31.5
30.1
22.5 16
(3) 1

51. Questions?

52. FORM 3
Questions
In case unit is cancelled, and the executed AFS has also been cancelled, however, if money received from allottee is yet to be paid back, should it be shown as booked or unbooked inventory?
What if the units are being split and sold to different individuals at their request? What should be reported?

53. Chartered Accountants
Talati & Talati LLP
Chartered Accountants
Address:
Ambica Chambers, Near Old High Court, Navrangpura, Ahmedabad
(M) (O)
(E)
(W)
Thank You