XML 28 R16.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Taxes Payable | 6 Months Ended
--- | ---
Dec. 31, 2017
Taxes Payable [Abstract] |
TAXES PAYABLE | 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 six months ended December 31, 2017 and 2016 of $1,845,926 and $1,879,465, 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 $1,106,590 and $792,503 for the six months ended December 31, 2017 and 2016, respectively. 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. On August 10, 2015 and August 28, 2015, the SAT released Notice #90. “Reinstatement of VAT for Fertilizer Products”, and Notice #97, “Supplementary Reinstatement of VAT for Fertilizer Products”, which restore the VAT of 13% of the gross sales price on certain fertilizer products includes non-organic fertilizer products starting from September 1, 2015, but granted taxpayers a reduced rate of 3% from September 1, 2015 through June 30, 2016. Income Taxes and Related Payables Taxes payable consisted of the following:
|  | December 31, |  | June 30,
|  | 2017 |  | 2017
VAT provision |  | $ | (628,399 | ) |  | $ | (575,872 | )
Income tax payable |  |  | 2,141,669 |  |  |  | 2,229,735 |
Other levies |  |  | 667,724 |  |  |  | 1,036,544 |
Total |  | $ | 2,180,994 |  |  | $ | 2,690,407 |
The provision for income taxes consists of the following:
|  | December 31, |  |  | June 30, |
|  | 2017 |  |  | 2017 |
Current tax |  |  | 3,253,593 |  |  | $ | 7,371,967 |
Deferred tax |  | $ | 0 |  |  |  | 0 |
Total |  |  | 3,253,593 |  |  | $ | 7,371,967 |
Tax Rate Reconciliation Our effective tax rates were approximately 20.1% and 19.4% for six months ended December 31, 2017 and 2016, 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 six months ended December 31, 2017 and 2016 for the following reasons: Tax Rate Reconciliation December 31, 2017
|  | China |  |  | United States |  |  |  |  |  |  |
|  | 15% - 25% |  |  | 34% |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 16,805,296 |  |  |  |  |  |  | $ | (630,768 | ) |  |  |  |  |  | $ | 16,174,528 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 4,201,324 |  |  |  | 0.250 |  |  |  | (214,461 | ) |  |  | 34 | % |  |  | 3,986,863 |  |  |  |  |
High-tech income benefits on Jinong |  |  | (1,230,618 | ) |  |  | -0.073 |  |  |  |  |  |  |  |  |  |  |  | (1,230,618 | ) |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | 282,887 |  |  |  | 0.017 |  |  |  |  |  |  |  |  |  |  |  | 282,887 |  |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | 0 |  |  |  |  |  |  |  | 214,461 |  |  |  | -34 | % |  |  | 214,461 |  |  |  |  |
Actual tax expense |  | $ | 3,253,593 |  |  |  | 19.4 | % |  | $ | 0 |  |  |  | 0.00 | % |  | $ | 3,253,593 |  |  |  | 20.1 | %
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | China |  |  | United States |  |  |  |  |  |  |
|  | 15% - 25% |  |  | 34% |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 17,806,630 |  |  |  |  |  |  |  | (1,856,270 | ) |  |  |  |  |  | $ | 15,950,360 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 4,451,658 |  |  |  | 25.0 | % |  |  | (631,132 | ) |  |  | 34.0 | % |  |  | 3,820,526 |  |  |  |  |
High-tech income benefits on Jinong |  |  | (1,139,344 | ) |  |  | (6 | )% |  |  | - |  |  |  | - |  |  |  | (1,139,344 | ) |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | (219,544 | ) |  |  | (1 | )% |  |  | - |  |  |  | - |  |  |  | (219,544 | ) |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  |  |  | 631,132 |  |  |  | (34.0 | )% |  |  | 631,132 |  |  |  |  |
Actual tax expense |  | $ | 3,092,769 |  |  |  | 17 | % |  | $ | - |  |  |  | - | % |  | $ | 3,092,769 |  |  |  | 19.4 | %

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration