Note 7 - Income Taxes

6 Months Ended

Sep. 30, 2015

Notes

Note 7 - Income Taxes

NOTE 7 - INCOME TAXES

The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made, as the Company had no U.S. taxable income for the three and six months ended September 30, 2015 and 2014.

The Company’s Chinese subsidiaries are governed by the Income Tax Law of the PRC concerning the privately run and foreign invested enterprises, which are generally subject to tax at a statutory rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments.

The reconciliation of income tax expense at the U.S. statutory rate of 35% to the Company's effective tax rate is as follows:

	Six Months Ended September 30,
	2015		2014
U.S. Statutory rate	$	2,873,562	$	1,893,196
Tax rate difference between China and U.S.		(821,018)		(540,913)
Permanent difference		(16,574)		(69,120)
Effective tax rate	$	2,035,970	$	1,283,163

The provisions for income taxes are summarized as follows:

	Six Months ended September 30,
		2015		2014
Current	$	2,003,263	$	1,283,163
Deferred		32,707		-
Total	$	2,035,970	$	1,283,163