Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

INCOME TAXES (Tables)

v3.21.4
INCOME TAXES (Tables)
12 Months Ended
Sep. 30, 2021
INCOME TAXES  
Schedule of deferred income taxes

As of September 30, 

    

2021

    

2020

    

2019

Deferred tax assets:

 

  

 

  

 

  

Bad debt allowance recorded for accounts receivable

$

333,280

$

303,056

$

289,756

Inventory provision

 

16,952

 

16,087

 

Net operating loss carry-forward

690,882

539,354

159,219

Less: valuation allowance

 

(687,654)

 

(133,885)

 

(159,219)

Total

$

353,460

$

724,612

$

289,756

Schedule of income taxes attributed to continuing operations

Income taxes for the years ended September 30, 2021 and 2020 are attributed to the Company’s continuing operations in China and consisted of:

For the year ended September 30, 

    

2021

    

2020

    

2019

Current

$

(958,210)

$

(1,021,565)

$

250,186

Deferred

 

406,064

 

(406,637)

 

(1,958)

Total

$

(552,146)

$

(1,428,202)

$

248,228

Schedule of income tax reconciliation

For the year ended September 30, 

    

2021

    

2020

    

2019

 

Income before taxes excluded the amounts of loss incurring entities

$

$

8,979,640

PRC EIT tax rates

 

15

%  

 

15

%  

 

15

%

Tax at the PRC EIT tax rates

 

 

 

1,346,946

Tax effect of 75% (50% for 2018 and 2017) R&D expenses deduction

 

 

 

(163,357)

Tax effect of deferred tax recognized

 

406,064

 

(406,637)

 

(1,958)

Tax effect of non-deductible expenses

 

 

 

18,307

Change in unrecognized tax benefits

(958,210)

(1,021,565)

(951,710)

Income tax expense (recovery)

$

(552,146)

$

(1,428,202)

248,228

Schedule of changes in unrecognized tax benefits

For the year ended September 30,

    

2021

    

2020

    

2019

Balance at beginning period

$

3,188,615

$

4,176,537

$

4,098,783

Addition for tax positions of the current year

 

(37,407)

 

(154,041)

 

993,194

Lapse of statute of limitations

 

(967,698)

 

(1,054,163)

 

(915,440)

Effect of exchange rate changes

171,322

220,281

Balance at ending period

$

2,354,832

$

3,188,615

$

4,176,537