Offsetting interest money with VAT and PAYE

Question ID: 21314

As salaam mualaykum Mufti Ilyas

regarding your reply to question no 4147. i have the following questions

a. can we offset interest against VAT paid for all products purchased or only VAT which companies pay.

b. as an employee, we pay p.a.y.e., which is automatically deducted, so can we make the niyyat that the paye is from interest money, than we can take the interest money which is in the bank, to the same value and use it.

c. if the answer to B is yes, then can we do this monthly or annually.

d. if we have not done this in the past, we have already paid P A Y E for many years, can we offset that now with interest money we currently have, or can we only do it going forward.


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Asked on October 7, 2009 12:00 am
Private answer

a) Interest on non-refundable vat is permissible.

b) No

c) N/A.

d) N/A.

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Answered on October 7, 2009 12:00 am