Calculating Zakah on This Project and Capital: Zakah on Trade Goods
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Q1: We have a commercial project which is the sale and purchase of cars on installment. The National Commercial Bank has offered us a service, which is to deduct the value of the installments from the buyers' salaries in exchange for a fee of
(1000 riyals) only, one thousand riyals and no more, from us as a commission on each car. The bank also takes from the buyer at the time of signing the bills of exchange a sum of (25 riyals) only, twenty-five riyals and no more, on each bill of exchange. Is this work permissible in the Shari'ah? Please give us a ruling, may Allah reward you.
A1: There is nothing wrong with what the bank or any other creditor takes from the debtor in exchange for its work in collecting the debt from the debtor.
Q2: How is the zakah calculated on this project, given that the capital is revolving and there is nothing of it in the showroom's cash box? Do we take zakah on the capital and the profits, or on the capital only?
A2: For one who trades by buying cars and selling them, zakah becomes obligatory if the lunar year (hawl) completes on the capital he trades with. He must appraise the cars and goods in his possession at the completion of the lunar year and pay zakah on the value of the cars and goods he has, on the balances he has, and on the debts owed to him by people.
(1000 riyals) only, one thousand riyals and no more, from us as a commission on each car. The bank also takes from the buyer at the time of signing the bills of exchange a sum of (25 riyals) only, twenty-five riyals and no more, on each bill of exchange. Is this work permissible in the Shari'ah? Please give us a ruling, may Allah reward you.
A1: There is nothing wrong with what the bank or any other creditor takes from the debtor in exchange for its work in collecting the debt from the debtor.
Q2: How is the zakah calculated on this project, given that the capital is revolving and there is nothing of it in the showroom's cash box? Do we take zakah on the capital and the profits, or on the capital only?
A2: For one who trades by buying cars and selling them, zakah becomes obligatory if the lunar year (hawl) completes on the capital he trades with. He must appraise the cars and goods in his possession at the completion of the lunar year and pay zakah on the value of the cars and goods he has, on the balances he has, and on the debts owed to him by people.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.