Zakaat In Business – There are two Scenaraios related to this
There is an Oil Supplier, and a Oil Retailer. I am the middle man in between. The Oil Supplier has fixed a price for the Oil to the Retailer. But this is just the Oil and does not include the packaging. I arrange for packaging (Bottles and labelling) and also place the order from the Oil Retailer to the Oil Supplier
I source bottles and labels from various companies. I pay for the raw products and send them off to the Oil Supplier so that he can put the oil in the packaging. The Oil Supplier will then fill the bottles and apply labels – then send off to the Oil Retailer.
The Oil Supplier bills me for the oil – I bill the Oil retailer at the exact same price – no profit is made here.
( Do I need to pay Zakaat – I am just facilitating the deal due to me supplying the bottles and labels?)
As For the Bottles and Labels packaging – I make a small profit on this and sell it as a separate cost to the Oil Retailer.
When is Zakaat payable on the above – do I pay it at the time of purchasing the raw products? Or is Zakaat to be calculated at the end of the year on the profits from the sales (and what balance of cash is left over)?
How do I calculate Zakaat on this? Will this be based on the cost of the packaging or the price that I sell it at?
So example the the raw product cost is 10.00 and I sell it on for 10.50 Do I calculate Zakaat based on the cost, the sold price or the profit of (0.50)?
In the second scenario about the Oil Supplier and Oil Retailer I paid upfront for another different set of Bottles and Labels packaging. As For the Bottles and Labels packaging – I make a small profit on this and sell it as a separate cost to the Oil Retailer. I had agreed with the Oil Retailer that they would be charged to his account over time whenever he placed an order for the Oil. Although I had paid for it up front – I am not the owner of the bottles and packaging – the Oil Retailer is. He just owes me the money for the packaging (which is gradually deducted when an order is placed).
Do I pay Zakaat on the raw products (bottle and labels) when I purchased them -even though the Oil Retailer has not paid me?
Do I indirectly own the bottles until the debt is paid?
IF there is any stock of bottles and labels left over at the end of the year – do i pay additional zakaat on these?