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[SaqlainRattansi]

Salams

I had a question on khums based on the below scenario

My date for Khums is March 15th. As at this date I have incurred an expense, however the amount I am supposed to pay the supplier is not confirmed yet. In my mind I had estimated the cost to be 1,000,000 TZS.

If we come to today, I now believe that the cost will come to only 800,000 now that I have some more, and better information. I am yet to pay my khums for the year.

Which amount should I take in my calculation as my payables?


Secondly, I have done business and I am expecting to receive 200,000 from a customer. The business is concluded however the customer has not yet paid me. Should I consider this 200,000 receivable as an asset and pay khums on it?

[ImraanMGSaleh]

Alaykum salaam.

1. This is going to be considered as a loan which you have to pay. If it was for a living expense then you can deduct the amount payable from your profit for the year.

2. This is a receivable and there are two scenarios.
A. You are able to recover the amount whenever you want, meaning whenever you demand the loan to be repaid, it will be repaid. In this scenario it is obligatory to pay complete khums on it immediately.

B. You are not able to recover the amount when you demand. In this scenario you have two options:
I. When you receive the loan, you pay the khums on it immediately.
II. You calculate the value of the loan and pay khums on it. And when you receive the loan, the amount that exceeded the calculated value is going to be considered as a profit for that year.

[SaqlainRattansi]

1. The question is, which amount do I take. Do I take the expense which I had estimated or do I take the actual figure? Considering that at my date of Khums I did not know the actual figure and I only had an estimate.

[ImraanMGSaleh]

Actual amount.