INCOME TAXES

6 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 3- INCOME TAXES

The Company follows FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, which defines a recognition threshold and measurement attribute for financial statement recognition and measurements of tax positions taken or expected to be taken in a tax return. As of September 30, 2012 this position did not result in any adjustment to the Company’s provision for income taxes.

As of September 30, 2012 and March 31, 2012, The Singing Machine had gross deferred tax assets of approximately $3.6 million and $3.9 million, respectively, against which the Company recorded valuation allowances totaling approximately $3.6 million and $3.9 million, respectively. The Company’s effective income tax rate is lower than what would be expected if the federal statutory rate was applied to income before provision for income taxes primarily because of net operating loss carry forwards that are more than sufficient to offset net income for the six months ended September 30, 2012.

As of September 30, 2012 the Company is subject to U.S. Federal income tax examinations for the tax years ended March 31, 2009 through March 31, 2012.