A merchant says, “This cloth cost me Rs 40,000; my profit is Rs 4,000.” Records show first purchase Rs 35,000, dyeing Rs 3,000, and transport Rs 2,000.
The accumulated cost can be Rs 40,000, but “I purchased it for Rs 40,000” would be false: the contractual first price was Rs 35,000.
If the seller accurately distinguishes these amounts and the expenses qualify, the mere difference does not prove cost misstatement. Auditing the first contract separately from later charges is essential.
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Murabahah and Tawliyah: Cost, Profit and Misstatement
A merchant says, “This cloth cost me Rs 40,000; my profit is Rs 4,000.” Records show first purchase Rs 35,000, dyeing Rs 3,000, and transport Rs 2,000.
The accumulated cost can be Rs 40,000, but “I purchased it for Rs 40,000” would be false: the contractual first price was Rs 35,000.
If the seller accurately distinguishes these amounts and the expenses qualify, the mere difference does not prove cost misstatement. Auditing the first contract separately from later charges is essential.