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TAXES PAYABLE | 9 Months Ended
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Mar. 31, 2013
Taxes Payable [Abstract] |
Disclosure of Taxes Payable [Text Block] | NOTE 12 - TAXES PAYABLE Enterprise Income Tax Effective January 1, 2008, the Enterprise Income Tax (“EIT”) law of the PRC replaced the prior tax laws for Domestic Enterprises (“DEs”) and Foreign Invested Enterprises (“FIEs”). The new EIT rate of 25% replaced the 33% DEs rate was and became applicable to both DEs and FIEs. The two-year exemption and three-year 50% reduction tax holiday for production-oriented FIEs were eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, as a result of the expiration of its tax exemption on December 31, 2007. Jinong’s provision for income taxes for the nine months ended March 31, 2013 and 2012 was $4,746,988 and $4,901,045, respectively. Gufeng is subject to 25% EIT rate and thus it made provision for income taxes of $2,010,416 and $2,760,235 for the nine months ended March 31, 2013 and 2012, respectively. Jintai and Yuxing have been exempt from paying income tax since its formation as it produces products which fall into the tax exemption list set out in the EIT. This exemption is expected to last as long as the applicable provisions of the EIT do not change. Value-Added Tax All of the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, “Exemption of VAT for Organic Fertilizer Products”, which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through December 31, 2015. The VAT exemption applies to all agricultural products sold by Jintai and Yuxing, and all but a nominal amount of agricultural products sold by Jinong. Income Taxes and Related Payables Taxes payable consist of the following:
|  | March 31, |  |  | June 30, |
|  | 2013 |  |  | 2012 |
VAT provision (credit) |  | $ | 41,984 |  |  | $ | 68,180 |
Income tax payable |  |  | 21,569,621 |  |  |  | 17,274,817 |
Other levies |  |  | 352,524 |  |  |  | 332,392 |
Total |  | $ | 21,964,129 |  |  | $ | 17,675,389 |
Tax Rate Reconciliation Our effective tax rates were approximately 18.1% and 19.9% for the nine months ended March 31, 2013 and 2012, respectively. Substantially all of the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 34% to income before income taxes for the nine months ended March 31, 2013 and 2012 for the following reasons:
Nine Months Ended March 31, |  | China |  |  | United States |  |  |  |  |  |  |
2013 |  | 15% - 25% |  |  | 34% |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 40,324,031 |  |  |  |  |  |  | $ | (3,053,240 | ) |  |  |  |  |  | $ | 37,270,791 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 10,081,008 |  |  |  | 25.0 | % |  |  | (1,038,102 | ) |  |  | 34.0 | % |  |  | 9,042,906 |  |  |  |  |
High-tech income benefits on Jinong |  |  | (1,976,456 | ) |  |  | (4.9 | )% |  |  | - |  |  |  | - |  |  |  | (1,976,456 | ) |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | (1,347,148 | ) |  |  | (3.3 | )% |  |  | - |  |  |  | - |  |  |  | (1,347,148 | ) |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  |  |  | 1,038,102 |  |  |  | (34.0 | )% |  |  | 1,038,102 |  |  |  |  |
Actual tax expense |  | $ | 6,757,404 |  |  |  | 16.8 | % |  | $ | - |  |  |  | - | % |  | $ | 6,757,404 |  |  |  | 18.1 | %
Nine Months Ended March 31, |  | China |  |  | United States |  |  |  |  |  |  |
2012 |  | 15% - 25% |  |  | 34% |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 41,861,062 |  |  |  |  |  |  | $ | (3,349,907 | ) |  |  |  |  |  | $ | 38,511,155 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 10,465,266 |  |  |  | 25.0 | % |  |  | (1,138,968 | ) |  |  | 34.0 | % |  |  | 9,326,298 |  |  |  |  |
High-tech income benefits on Jinong |  |  | (2,038,594 | ) |  |  | (4.9 | )% |  |  | - |  |  |  | - |  |  |  | (2,038,594 | ) |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | (765,392 | ) |  |  | (1.8 | )% |  |  | - |  |  |  | - |  |  |  | (765,392 | ) |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  |  |  | 1,138,968 |  |  |  | (34.0 | )% |  |  | 1,138,968 |  |  |  |  |
Actual tax expense |  | $ | 7,661,280 |  |  |  | 18.3 | % |  | $ | - |  |  |  | - | % |  | $ | 7,661,280 |  |  |  | 19.9 | %

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