What is the ruling of Zakat on commercial commodities?
• Fixed assets: such as machinery, buildings, trucks and equipment. All fixed assets are not liable to Zakat. • Intention is the criterion of considering properties as commercial commodities or not. If a person purchases a car for personal use, but may sell it if it sells good, it should not be counted as a commercial commodity. But when a person purchases a number of cars for trade, then uses one of them, the used car will also be liable to Zakat as a commercial commodity. • The value of commercial commodities should be estimated according to the wholesale price, whether it will be sold by retail or by wholesale. This is the view approved by the Juristic Academy in Mecca. • A merchant should estimate the value of his commercial commodities according to the current market rate, whether it is higher or lower than the sale price. The sale price meant here is the price when Zakat falls due. • If the company pays Zakat on its shares, the shareholder is not obliged to pay Zakat on his share
