Performance incentives received from USA

Dear 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. 

 

Replies (2)
Quick Summary
This discussion addresses whether a software development company should issue a tax invoice or a debit note for performance incentives received from a US customer. While both might seem possible, a tax invoice is generally considered the more logically correct and practical option for export sales, especially when related to tax implications. A debit note is typically used for sales returns or specific credit transactions.

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. 

Both are possible. but practically tax invoice is only logically correct.

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