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As per SEBI guidelines, the client is entitled to claim refund during the tenure of his subscription for the unexpired period excluding GST and fees of one quarter. The Fees of one quarter will be charged as breakage fee. Following samples can be referred for better clarity:
Refundable amount = Fees paid excluding GST* (-) One quarter breakage fees (-) Fee for used period
*Please note that GST is non refundable.
Mr. Trader availed subscription of Value services on Aug 1 and paid the fees of Rs.34,000 for two quarters in advance. Mr. Ram wishes to terminate the services and requests for refund of subscription amount on Aug 10.
|Used period Fee deducted||1888.88|
|Breakage Fee Deducted (One Quarter)||17000||Applicable Refund||15111.11|
|Used period Fee deducted||5666.66|
|Breakage Fee Deducted (One Quarter)||17000|
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