Ruling on selling an item on credit for a higher price than if it is paid for immediately

Dear Brothers & Sisters,
As-Salaamu-Alaikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked this question:
If one sells an item at Rs.10 against cash payment, can he demand a higher price from a a buyer who wants to buy on 30 days credit. IN other words:
If an item is sold for Rs. 10 against cash payment, can the seller demand Rs, 11 for the same item from a buyer who wants to buy against 30 days credit. This question needs clarification in the light of Riba .
(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)
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Answer:

Praise be to Allaah.

It is permissible to sell an item on credit for a higher price than if it is paid for immediately, whether the payment is to be made in installments or in one payment at the later date. But this is conditional upon the two parties not separating until they have agreed how the transaction is to be done, whether it is to be paid immediately or deferred. In this case the additional amount is not riba, and there is nothing in sharee’ah to specify the amount of the extra payment in the case of deferred payment. But the Messenger of Allaah (peace and blessings of Allaah be upon him) encouraged tolerance in matters of selling, buying, paying off debts and asking others to pay debts.

Fataawa al-Lajnah al-Daa’imah

See Fataawa Islaamiyyah, part 2, p. 335

But if he sells it for ten, for example, then the purchaser subsequently wants to delay payment, it is not permissible for the vendor to add anything to that. If he adds something in return for extending the time period, this is riba and is haraam and a major sin. We ask Allaah to keep us safe and sound.

See also the answer to question no. 1231.

Whatever written of Truth and benefit is only due to Allah's Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

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