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Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities | 6 Months Ended
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Mar. 31, 2013
Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities [Text Block] | 12. Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (a) Income taxes in the consolidated statements of comprehensive loss The Company’s provision for income taxes consisted of:
|  | For the Three Months |  |  | For the Six Months |
|  | ended March 31, |  |  | ended March 31, |
|  | 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |
PRC income tax: |  |  |  |  |  |  |  |  |  |  |  |
Current | $ | - |  | $ | 213,424 |  | $ | - |  | $ | 244,822 |
Deferred |  | 7,846 |  |  | 5,780,842 |  |  | 2,121,856 |  |  | 5,781,450 |
| $ | 7,846 |  | $ | 5,994,266 |  | $ | 2,121,856 |  | $ | 6,026,272 |
United States Tax China BAK is subject to statutory tax rate of 35% under United States of America tax law. No provision for income taxes in the United States or elsewhere has been made as China BAK had no taxable income for the three months and six months ended March 31, 2012 and 2013. Canada States Tax BAK Canada is subject to statutory tax rate of 38% under Canada tax law. No provision for income taxes in Canada has been made as BAK Canada had no taxable income for the three months and six months ended March 31, 2012 and 2013. German States Tax BAK Europe is subject to 25% statutory tax rate under Germany tax law. India Tax BAK India is subject to 30% statutory tax rate under India tax law. No provision for income taxes in India has been made as BAK India had no taxable income for the three months and six months ended March 31, 2012 and 2013. Hong Kong Tax BAK International is subject to Hong Kong profits tax rate of 16.5% . Management of BAK International has determined that all income and expenses are offshore and not subject to Hong Kong profits tax. As a result, BAK International did not incur any Hong Kong profits tax during the periods presented. PRC Tax Shenzhen BAK is entitled to a preferential enterprise income tax rate of 15% for the three months and six months ended March 31, 2012 and 2013. BAK Electronics and BAK Tianjin are subject to an income tax rate of 25%. BAK Electronics and BAK Tianjin did not incur any enterprise income tax for the current year due to cumulative tax losses. A reconciliation of the provision for income taxes determined at the statutory income tax to the Company's income tax expenses as follows:
|  | For the Three Months |  |  | For the Six Months |
|  | ended March 31, |  |  | ended March 31, |
|  | 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |
Loss before income taxes | $ | (15,620,202 | ) | $ | (16,634,943 | ) | $ | (15,325,946 | ) | $ | (41,827,855 | )
United States federal corporate income tax rate |  | 35% |  |  | 35% |  |  | 35% |  |  | 35% |
Income tax computed at United States statutory corporate income tax rate |  | (5,467,071 | ) |  | (5,822,230 | ) |  | (5,364,081 | ) |  | (14,639,749 | )
Reconciling items: |  |  |  |  |  |  |  |  |  |  |  |
Rate differential for PRC earnings |  | 2,542,096 |  |  | 3,031,273 |  |  | 1,624,531 |  |  | 8,061,891 |
Loss not recognized as deferred tax assets |  | 2,912,297 |  |  | 2,970,313 |  |  | 3,385,665 |  |  | 6,533,102 |
Valuation allowance on deferred tax assets |  | 7,846 |  |  | 5,780,842 |  |  | 2,121,866 |  |  | 5,781,450 |
Share based payment |  | 12,678 |  |  | 34,068 |  |  | 76,739 |  |  | 76,434 |
Under-provision in prior year |  | - |  |  | - |  |  | 277,136 |  |  | 213,144 |
Income tax expenses | $ | 7,846 |  | $ | 5,994,266 |  | $ | 2,121,856 |  | $ | 6,026,272 |
As of September 30, 2012 and March 31, 2013, the Company’s U.S. entity, had net operating loss carry forwards of $2,206,951 and $2,690,063, respectively, available to reduce future taxable income which will expire in various years through 2030 and the Company’s PRC subsidiaries had net operating loss carry forwards of $56,467,856 and $104,764,412 which will expires in various years through 2018. Management believes it is more likely than not that the Company will not realize these potential tax benefits as the Company’s U.S. operations will not generate any operating profits in the foreseeable future. As a result, the full amount of the valuation allowance was provided against the potential tax benefits. (b) Deferred tax assets and deferred tax liabilities The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of September 30, 2012 and March 31, 2013 are presented below:
|  | Sep 30, 2012 |  |  | Mar 31, 2013 |
Deferred tax assets |  |  |  |  |  |
Short-term |  |  |  |  |  |
Trade accounts receivable | $ | 8,651,151 |  | $ | 12,447,987 |
Inventories |  | 3,104,830 |  |  | 5,291,639 |
Accrued expenses and other payables |  | 597,130 |  |  | 713,875 |
Valuation allowance |  | (8,353,068 | ) |  | (18,453,501 | )
Short-term deferred tax assets |  | 4,000,043 |  |  | - |
Long-term |  |  |  |  |  |
Property, plant and equipment |  | 4,877,766 |  |  | 6,580,441 |
Net operating loss carried forward |  | 12,271,943 |  |  | 19,924,429 |
Valuation allowance |  | (15,412,728 | ) |  | (26,504,870 | )
Long-term deferred tax assets |  | 1,736,981 |  |  | - |
Total net deferred tax assets | $ | 5,737,024 |  | $ | - |
Deferred tax liabilities: |  |  |  |  |  |
Long-term |  |  |  |  |  |
Property, plant and equipment | $ | (759,394 | ) | $ | (768,948 | )
Net deferred tax assets | $ | (759,394 | ) | $ | (768,948 | )

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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