Question Summary:
Zakaat on shop

Question Detail:

I am paying installments on a property [shop] which is not under my name yet. Once I will complete all the installments then landlord will transfer the shop under my name. Do I have to pay zakaat for it? I have started my installments from February 2013.

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykumwa-rahmatullāhiwa-barakātuh.
According to Shariah, if one possesses the nisaab amount of zakat and one’s liabilities do not exceed one’s assets, then zakat is obligatory on such a person. Moreover, zakat is calculated on zakatable assets which are in one’s ownership.
With regards to your question, zakat is not obligatory on the shop since it is not a zakatable asset. Moreover, the installments due for the purchase of the shop will be considered as a liability when calculating one’s Zakaat.
You did not state whether the purchase of the shop included the stock in trade or not. Kindly advise if you have purchased the shop with the merchandise/stock in-trade or not?
Kindly refer to the following zakat table for more details:
 

Personal Wealth

Amounts:

1.   Amount of Cash and Savings at home or in the bank

R 10,000

2.   Current value of any gold and silver jewelry, coins, utensils etc

R 5,000

3.   Value of  assets and merchandise for trade

R 20,000

4.   Receivables and loaned amounts to others

R 5,000

Total these amounts here:

R 40,000

Amount Debts to be paid:

R 20,000

Subtract the total amount of debts for the year from the above amount.

Nett Total of Zakatable Wealth

R 20,000

if the net total of Zakatable Wealth is more than the Nisab amount then…

Multiply the net total by 2.5% (nett amount x 0.025)

R 500