Dinesha S Acharya (Senior Accountant) (24 Points)
23 November 2021Dear Sir/ Madam,
Can you guide me the above subject,
Our company is a software development company and we have overseas transactions also. We are billing export invoice to the customer. This month the customer has declared Performance Incentive for one project, in which, whether can we raise the tax invoice or Debit Note ?
Which one is correct, please guide me and provide the information to understand ourselves.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 November 2021
Performance bonus is related to tax , so tax invoice is better to show it to your clients. Debit note on the other hand is related to sales transactions only. However, you are also selling exports which makes debit notes probable on income earned from foreign. You must understand the aspect of administration of ledger. A debit note is a document sent by a buyer to its seller, or in other words, a purchaser to its vendor while returning goods received on credit. So if you have this situation, only then debit note is probable.
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 25 November 2021
CAclubindia
