XML 31 R16.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

Taxes Payable | 9 Months Ended
--- | ---
Mar. 31, 2024
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 March 31, 2007. Value-Added Tax All the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 9% 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 March 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. On April 28, 2017, the PRC State of Administration of Taxation (SAT) released Notice 2017 #37, “Notice on Policy of Reduced Value Added Tax Rate,” under which, effective July 1, 2017, all the Company’s fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 11% of the gross sales price. The tax rate was reduced 2% from 13%. On April 4, 2018, the PRC State of Administration of Taxation (SAT) released Notice 2018 #32, “Notice on Adjustment of VAT Tax Rate,” under which, effective May 1, 2018, all the Company’s fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 10% of the gross sales price. The tax rate was reduced 1% from 11%. On March 20, 2019, the PRC State of Administration of Taxation (SAT) released Notice 2019 #39, “Announcement on Policies Concerning Deepening the Reform of Value Added Tax,” under which, effective April 1, 2019, all the Company’s fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 9% of the gross sales price. The tax rate was reduced 1% from 10%. Income Taxes and Related Payables
|  | March 31, |  |  | June 30, |
|  | 2024 |  |  | 2023 |
VAT provision |  | $ | (571,042 | ) |  | $ | (398,499 | )
Income tax payable |  |  | (2,158,708 | ) |  |  | (2,132,400 | )
Other levies |  |  | 611,741 |  |  |  | 591,325 |
Repatriation tax |  |  | 29,010,535 |  |  |  | 29,010,535 |
Total |  | $ | 26,892,526 |  |  | $ | 27,070,961 |
The provision for income taxes consists of the following:
|  | March 31, |  |  | March 31, |
|  | 2024 |  |  | 2023 |
Current tax |  | $ | (10,828 | ) |  | $ | - |
Deferred tax |  |  | - |  |  |  | - |
Total |  | $ | (10,828 | ) |  | $ | - |
Significant components of deferred tax assets were as follows:
|  | March 31, |  |  | June 30, |
|  | 2024 |  |  | 2023 |
Deferred tax assets |  |  |  |  |  |
Deferred tax benefit |  |  | 32,874,122 |  |  |  | 32,464,001 |
Valuation allowance |  |  | (32,765,474 | ) |  |  | (32,366,181 | )
Total deferred tax assets |  | $ | 108,647 |  |  |  | 97,820 |
Tax Rate Reconciliation Our effective tax rates were approximately 0.1% and 0% for the nine months ended March 31, 2024 and 2023, 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 operations and comprehensive income (loss) differ from the amounts computed by applying the US statutory income tax rate of 21.0% to income before income taxes for the nine months ended March 31, 2024 and 2023 for the following reasons: March 31, 2024
|  | China 15% - 25% |  |  |  |  |  | United States 21% |  |  |  |  |  | Total |  |  |  |
Pretax loss |  | $ | (15,060,332 | ) |  |  |  |  |  |  | (3,005,976 | ) |  |  |  |  |  |  | (18,066,308 | ) |  |  |  |
Expected income tax expense (benefit) |  |  | (3,765,083 | ) |  |  | 25.0 | % |  |  | (631,255 | ) |  |  | 21.0 | % |  |  | (4,396,338 | ) |  |  |  |
High-tech income benefits on Jinong |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  |  |  |  | - |  |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | 3,754,255 |  |  |  | -24.9 | % |  |  | - |  |  |  |  |  |  |  | 3,754,255 |  |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  | - |  |  |  | 631,255 |  |  |  | -21.0 | % |  |  | 631,255 |  |  |  |  |
Actual tax expense |  | $ | (10,828 | ) |  |  | 0.1 | % |  |  | - |  |  |  | - |  |  |  | (10,828 | ) |  |  | 0.1 | %
March 31, 2023
|  | China 15% - 25% |  |  |  |  |  | United States 21% |  |  |  |  |  | Total |  |  |  |
Pretax loss |  | $ | (1,474,883 | ) |  |  |  |  |  |  | (2,460,172 | ) |  |  |  |  |  | $ | (3,932,555 | ) |  |  |  |
Expected income tax expense (benefit) |  |  | (368,721 | ) |  |  | 25.0 | % |  |  | (516,636 | ) |  |  | 21.0 | % |  |  | (885,357 | ) |  |  |  |
High-tech income benefits on Jinong |  |  | 552,397 |  |  |  | (37.5 | )% |  |  | - |  |  |  | - |  |  |  | 552,397 |  |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | (183,676 | ) |  |  | 12.5 | % |  |  | - |  |  |  | - |  |  |  | (183,676 | ) |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  | 0 | % |  |  | 516,636 |  |  |  | (21.0 | )% |  |  | 516,636 |  |  |  |  |
Actual tax expense |  | $ | - |  |  |  | 0 | % |  | $ | - |  |  |  | 0 | % |  | $ | - |  |  |  | 0 | %

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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