XML 29 R16.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Taxes Payable | 3 Months Ended
--- | ---
Sep. 30, 2018
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, because of the expiration of its tax exemption on December 31, 2007. Accordingly, it made provision for income taxes for the three-month period ended September 30, 2018 and 2017 of $1,041,180 and $1,013,134, 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 $395,255 and $511,796 for the three months ended September 30, 2018 and 2017, respectively. Value-Added Tax Certain 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. Income Taxes and Related Payables
|  | Sept 30, |  |  | June 30, |
|  | 2018 |  |  | 2018 |
VAT provision |  | $ | (444,722 | ) |  | $ | (449,140 | )
Income tax payable |  |  | 77,307 |  |  |  | 554,065 |
Other levies |  |  | 821,723 |  |  |  | 836,747 |
Total |  | $ | 454,308 |  |  | $ | 941,672 |
The provision for income taxes consists of the following
|  | September 30, |  |  | September 30, |
|  | 2018 |  |  | 2017 |
Current tax - foreign |  | $ | 1,654,416 |  |  | $ | 1,722,655 |
Deferred tax |  |  | - |  |  |  | - |
|  | $ | 1,654,416 |  |  | $ | 1,722,655 |
Our effective tax rates were approximately 15.5% and 25.3% for the three months ended September 30, 2018 and 2017, respectively. Substantially all 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 three months ended September 30, 2018 and 2017 for the following reasons: September 30, 2018 Tax Rate Reconciliation September 30, 2018
|  | China |  |  |  |  |  | United States |  |  |  |  |  |  |  |  |  |
|  | 15% - 25% |  |  |  |  |  | 21% |  |  |  |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 11,287,985 |  |  |  |  |  |  |  | (621,765 | ) |  |  |  |  |  | $ | 10,666,220 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 2,821,996 |  |  |  | 25.0 | % |  |  | (130,571 | ) |  |  | 21.0 | % |  |  | 2,691,426 |  |  |  |  |
High-tech income benefits on Jinong |  |  | (1,041,180 | ) |  |  | (9.5 | )% |  |  | - |  |  |  | - |  |  |  | (1,041,180 | ) |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | (126,400 | ) |  |  | (1.1 | )% |  |  | - |  |  |  | - |  |  |  | (126,400 | ) |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  |  |  | 130,571 |  |  |  | (21.0 | )% |  |  | 130,571 |  |  |  |  |
Actual tax expense |  | $ | 1,654,416 |  |  |  | 14.7 | % |  | $ | - |  |  |  | - | % |  | $ | 1,654,416 |  |  |  | 15.5 | %
|  | China |  |  |  |  |  | United States |  |  |  |  |  |  |  |  |  |
September 30, 2017 |  | 15% - 25% |  |  |  |  |  | 34% |  |  |  |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 7,015,501 |  |  |  |  |  |  | $ | (198,017 | ) |  |  |  |  |  | $ | 6,817,484 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 1,753,875 |  |  |  | 0.250 |  |  |  | (67,326 | ) |  |  | 34 | % |  |  | 1,686,549 |  |  |  |  |
High-tech income benefits on Jinong |  |  | (675,422 | ) |  |  | -0.096 |  |  |  |  |  |  |  |  |  |  |  | (675,422 | ) |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | 644,202 |  |  |  | 0.092 |  |  |  |  |  |  |  |  |  |  |  | 644,202 |  |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  |  |  | 67,326 |  |  |  | -34 | % |  |  | 67,326 |  |  |  |  |
Actual tax expense |  | $ | 1,722,655 |  |  |  | 24.6 | % |  | $ | - |  |  |  | 0.00 | % |  | $ | 1,722,655 |  |  |  | 25.3 | %

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://fasb.org/us-gaap/role/ref/legacyRef -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