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NOTE 18 - INCOME TAXES | 12 Months Ended
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Mar. 31, 2013
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | NOTE 18 – INCOME TAXES Income tax expense (benefit) for each of the years ended March 31 consists of the following:
|  | March 31, |
|  | 2013 |  |  | 2012 |
Current: |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
Foreign |  |  | 157,382 |  |  |  | (691,125 | )
State |  |  | - |  |  |  | - |
Net Current |  |  | 157,382 |  |  |  | (691,125 | )
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
Foreign |  |  | (522,498 | ) |  |  | 863,953 |
State |  |  | - |  |  |  | - |
Net Deferred |  |  | (522,498 | ) |  |  | 863,953 |
Total tax provision |  | $ | (365,116 | ) |  | $ | 172,828 |
The significant components of deferred income tax expense (benefit) from operations before non-controlling interest for each of the years ended March 31 consist of the following:
|  | March 31, |
|  | 2013 |  |  | 2012 |
Deferred tax expense (benefit) |  | $ | (522,498 | ) |  | $ | 172,828 |
Net operating loss carry forward |  |  | 891,816 |  |  |  | 2,717,569 |
Foreign Tax Credits |  |  |  |  |  |  |  |
Less: Valuation Allowance |  |  | 891,816 |  |  |  | 2,717,569 |
Net deferred tax expense |  | $ | (522,498 | ) |  | $ | 172,828 |
The table below sets forth income tax expense (benefit) for 2013 and 2012 computed by applying the applicable United States federal income tax rate and is reconciled to the tax expense (benefit) computed at the effective income tax rate:
|  | March 31, |
|  | 2013 |  |  | 2012 |
Computed expected income tax (benefit) |  |  | (768,709 | ) |  |  | (2,633,955 | )
State tax benefit net of federal tax |  |  |  |  |  |  | 421,820 |
Change in valuation allowance |  |  | 768,709 |  |  |  | (923,973 | )
Deferred expenses from foreign acquisition |  |  |  |  |  |  | 283,900 |
Impairment loss on goodwill |  |  |  |  |  |  | 406,047 |
Impairment loss on investments |  |  |  |  |  |  | 2,553,938 |
Capitalized interest costs |  |  |  |  |  |  | (275855 | )
Deferred Tax Assets from foreign subsidiaries |  |  | (365,116 | ) |  |  |  |
Other |  |  |  |  |  |  | (4,751 | )
Effective income tax rate |  |  | (15.2 | )% |  |  | 2.2 | %
The deferred tax assets and liabilities as of March 31 consist of the following tax effects relating to temporary differences and carry forwards:
|  | March 31, |
|  | 2013 |  |  | 2012 |
Current deferred tax liabilities (assets): |  |  |  |  |  |
Deferred Acquisition Costs – Foreign taxes |  | $ | 221,700 |  |  | $ | 135,980 |
Valuation allowance |  |  | 0 |  |  |  | 0 |
Net current deferred tax liabilities (assets) |  |  | 221,700 |  |  |  | 135,980 |
Noncurrent deferred tax (assets) liabilities: |  |  |  |  |  |  |  |
Deferred Acquisition Costs- Foreign taxes |  |  | (563,155 | ) |  |  | 727,973 |
Net Operating Losses |  |  | 891,816 |  |  |  | 2,717,569 |
Valuation allowance |  |  | (891,816 | ) |  |  | (2,717,569 | )
Non-Current net deferred tax (assets) liabilities |  | $ | (563,155 | ) |  | $ | 727,973 |
Deferred income tax assets, net of valuation allowances are expected to be realized through future taxable income. The valuation allowance increased in 2013 by $892 thousand, primarily related to 2013 US net-operating losses. We do expect the foreign deferred tax credits to be utilized. Therefore, those assets remain without a valuation allowance. The company intends to maintain valuation allowances for deferred tax assets (except a previously mentioned) until there is sufficient evidence to support the reversal of the valuation allowance. Deferred tax liabilities ($877.8 thousand) appeared on the acquired company’s books at the date of acquisition for fiscal year end 2012. Those deferred assets were removed during 2013 after making post acquisition corrections. The Company's and/or its subsidiaries’ ability to utilize their net operating loss carry forwards may be significantly limited by Section 382 of the Internal Revenue Code of 1986, as amended, if the Company or any of its subsidiaries undergoes an “ownership change” as a result of changes in the ownership of the Company's or its subsidiaries’ outstanding stock pursuant to the exercise of the warrants or otherwise. A corporation generally undergoes an “ownership change” when the ownership of its stock, by value, changes by more than 50 percentage points over any three-year testing period. In the event of an ownership change, Section 382 imposes an annual limitation on the amount of post-ownership change taxable income a corporation may offset with pre-ownership change net operating loss carry forwards and certain recognized built-in losses. As of March 31, 2013 IGC could not use its’ net operating losses because it is more likely it will not utilize net operating losses in the foreseeable future.

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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 Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 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=26873400&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 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: 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 6: 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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