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I know that is not permissible to charge Goodwill when selling a business. Is it true that you may inflate the price?

Answered according to Hanafi Fiqh by Askimam.org

1.I know that is not permissible to charge Goodwill when selling a business. Is it true that you may inflate the price? If yes, then why? Because is this not the same as charging goodwill but just calling it a different name?

2.  I will be out of town for 16 days, of which 10 days will be in Egypt and the rest in Dubai . Does safr namaaz apply to me even though I will be gone for more than 14 days since i am Hanafi? How would the Shafee way differ?

Answer

According to the Laws of Islamic Finance and Economics, it is not permissible to charge any excess over and above the purchase price. in view of this principle, it is not permissible to charge goodwill. Billing the goodwill amount into the selling price is an alternitive to get the money through a Shariah Compliant way. It is not a mere changing of names that matters, but the procedure adopted in concluding the transaction is important.

You will remain a Musafir (traveller) throughout your 16 day trip. One will only become a Muqeem (temporary resident) if he/she intends to stay for 15 days or more in one place. Since you will be moving after ten days, you will remain a Musafir. This is the ruling according to the Hanafi Madhab. If your collegues follow a different ruling or Madhab, you should respect that.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

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