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whatever amount is paid as additional upfront to B15 advisors,it may be divided into12 parts,and paid as additional 1st yr trail.so there will not be any need of clawback.

I think there is no claw back if there is Trail module.

Claw back should be revoked, since mutual fund investments are subject to market risk so are the clients, if they get good profit or if they feel they are acquiring loss in a year they have will to exit. So IFA can not ask a client not to exit and hold . it is not a fault of IFA. Also advance commission should not be paid or AMFI can ask make an option in all application forms asking IFA ''whether he wants advance commission or not'' , if yes,then clawback should be viable to him and if not no claw back should be forced on IFA.

Back to month for all commission

We are in a business of not assured returns to consumer as well as to us. Investor always require best result and any thing goes wrong they will not remember what the Advisor has cautioned and withdraws/stops SIP. Hence we cannot stop the pull back. Advisor at liberty to ask for not opting to receive future commission. Contact the respective RM and ask him to stop paying advance commission. But, common rules, comes as hurdle. Let whatever comes first. After all deduction/clawback is penalised with interest. Hence receiving advance commission is not poisons. We pay IT as per Income. If there is less income in the coming year, you pay less!!!

Better opt for all trail model because there is no clawback and all trail model gives you more income than upfront plus trail model .Because our indian equity market is going to have big ride on the upside irrespective of small volatility in the interim.ANd bring ur clients with a minimum time horizon of 10 to 15 years. That is good for everybody.if YOU OPT ALL TRAIL MODEL EVEN IF YOU ARE SENIOR CITIZEN YOUR KIDS WILL ENJOY THE FRUITS AFTER UR DEATH BECAUSE OF THE NOMINATION.

CLAWBACK OF COMMISSION

Hello..Mr.Murli, I agree with Mr. Narayanan from Mumbai pay tax after deducting the claw back amount.Good that you have started the discussion on claw back....

I am veering around to the view that of the T-15 upfront brokerage received during the year, only such portion of the brokerage that pertains to the period of the Investment till 31.3.15 should be considered as income and offered for tax. The balance should be shown as a liability to be transferred to income next year when the full period of the "exit load" has run up. There are varying periods of exit load from 12 to 18 to 24 months. Since B-15 upfront brokerage is "clawback"able in full if redeemed before 1 year, the entire amount received should be shown as a liability and be offered for tax only during the year of completion of one year of investment. Any thoughts.

Upfront brokerage shouldn''t be clawback in B 15 category city .

The year in which the brokerage is clawedback,it is the businessloss of that year and it shall be set off against the business income of that particular year.More precisely the clawback brokerage can be adjusted against the brokerage recd in the year under consideration.

Our income after claw back is taxable. ex if income is 100 and claw back for previous is 10 now only 90 is offered as taxable income .not 100. so 10 has got adjusted.(earlier we offered this 10 for tax, now we are not offering) hope my thinking is right as we take the nett amount received after all adjustments like claw back as our income and then pay tax.

Sir exactly you are correct because the taxes paid on the brokerage/incentives already recieved may or may not come to clawback condition. But once the taxes for our income which we already received preceeding year/years will go from our hand.Your idea is a thought breaking one.