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TAXES PAYABLE | 9 Months Ended
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Mar. 31, 2014
Taxes Payable [Abstract] |
Disclosure of Taxes Payable [Text Block] | NOTE 11 – TAXES PAYABLE Enterprise Income Tax Effective January 1, 2008, the Enterprise Income Tax (“EIT”) law of the PRC replaced the tax laws for Domestic Enterprises (“DEs”) and Foreign Invested Enterprises (“FIEs”). The EIT rate of 25% replaced the 33% rate that was applicable to both DEs and FIEs. The two year tax exemption and three year 50% tax reduction tax holiday for production-oriented FIEs was 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. Accordingly, it made provision for income taxes for the nine months ended March 31, 2014, and 2013 of $3,698,296 and $4,746,988, respectively, which is mainly due to the operating income from Jinong. Gufeng is subject to 25% EIT rate and thus it made provision for income taxes of $2,752,026 and $2,010,416 for the nine months ended March 31, 2014 and 2013. 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 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, |
|  | 2014 |  | 2013 |
VAT provision |  | $ | 21,377 |  | $ | 36,573 |
Income tax payable |  |  | 9,290,397 |  |  | 25,348,794 |
Other levies |  |  | 357,597 |  |  | 343,392 |
Total |  | $ | 9,669,371 |  | $ | 25,728,759 |
Tax Rate Reconciliation Our effective tax rates were approximately 23.3% and 18.1% for the nine months ended March 31, 2014 and 2013, 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, 2014 and 2013 for the following reasons:
March 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | China |  | United States |  |  |
|  | 15% - 25% |  | 34% |  | Total |
Pretax income (loss) |  | $ | 35,186,323 |  |  |  |  | $ | (7,472,676) |  |  |  |  | $ | 27,713,647 |  |  |
Expected income tax expense (benefit) |  |  | 8,796,581 |  |  | 25.0 | % |  | (2,540,710) |  |  | 34.0 | % |  | 6,255,871 |  |  |
High-tech income benefits on Jinong |  |  | (2,305,732) |  |  | (6.6) | % |  | - |  |  | - |  |  | (2,305,732) |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | (40,527) |  |  | (0.1) | % |  | - |  |  | - |  |  | (40,527) |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  | 2,540,710 |  |  | (34.0) | % |  | 2,540,710 |  |  |
Actual tax expense |  | $ | 6,450,322 |  |  | 18.3 | % | $ | - |  |  | - | % | $ | 6,450,322 |  | 23.3 | %
March 31, 2013 |  | China |  | United States |  |  |
|  | 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 | %

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