1)A man sells an item on the
following terms.
If the customer pays cash for the item, he pays R100. If he takes it on
terms, He will pay R10 a month for 12 months=R120. Is the above
permissible
2)A man buys an item from
USA for $100 on the 1st of August . The exchange rate on 1st August is
1$=R5.The amount owing=$100 x R500=R500
When paying on the 30th August, The exchange rate is 1$=R6. According
to international trade agreements, when the account is paid it has to
be paid according to the exchange rate on the date of payment.
In the above case it is: $100 x R600=R600
Is the extra R100 interest. According to accounting principles, the
extra R100 will be considered as a profit on sale in the books of the
seller.
iF THE PERSON SELLING THE GOOD IS THE SUPPLIER IN THE USA allowed to
show the extra money as a profit on sale or does he have to dispose of
it.
If the purchaser allowed to pay the extra R100
ANSWER
1. In principle, it is
permissible to sell an item with a cash price or credit price. The
credit price could be higher than the cash price. It is a condition
that in this instance, the deal must be concluded on either price, cash
or credit. It is not permissible to sell an item with an open cash and
credit price. In that instance, the surplus amount will be primarily in
lieu of time and be regarded as interest.
2. If the deal was concluded on $100, the seller is entitled to
$100. The purchaser will have to pay $100 to the seller irrespective of
the fluctuation in the dollar rate.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai
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