Sahulat Journal 4, Vol. 3, June 2015, No.1
S. M. Wasiullah1, F. Abu Backer2, and Dr. Khalid Waheed3
The success of any alternative mode of finance relies on how much ‘extra profit’ it offers to the customers or ‘how cost effective’ it is in comparison to the other existing modes. The more a financial product is profitable and cost effective, the more it is technically feasible to be adopted in a market. Therefore, this paper attempts to study the technical feasibility of one of the major Islamic Finance contracts – Murabaha in comparison to the prevailing modes of conventional finance. This paper explores the impacts of Indian taxation laws and provisions on Murabaha. Further, it proposes possible solutions to make Murabaha technically feasible and viable for adoption in the Indian market.
Download Whole Article: Murabaha Contract, Its Application and Tax Implications in India