Question:

In the restaurant business there is always around $10,000 of raw material (ingredients) like flour, oil, sugar etc. in stock. This stock is also there at the end of the (zakatable) year. Is there zakat on this stock? If yes, then will it be considered disbursed if paid from the profits with the permission of all the partners, or is it necessary that each partner pay his individual zakat?

Answer: حامدا ومصليا ومسلما
The raw materials are the items that are sold. Therefore zakat will be compulsory on it since it is merchandise. However zakat will only be wajib on the person who owns the shar’ee nisab. If a partner paid the zakat of another, on whom zakat was compulsory it will be considered disbursed provided he had his permission.
And Allah Ta’aalaa knows best
(Hazrat Mufti) Ahmed Khanpuri (May Allah preserve him)
Mahmoodul Fataawaa (2/24-25)