v3.26.1
Taxes
 12 Months Ended
Mar. 31, 2026
Taxes [Abstract]  
TAXES

Note 13 – TAXES

 

Income tax

 

Income tax expense includes a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for items which are considered discrete to the period.

 

A reconciliation of the income tax provision at the federal statutory rate and the effective rate is as follows:

 

    For the years ended
March 31		  
    2026     2025     2024  
China income taxes     25.0 %     25.0 %     25.0 %
Impact of US and HK tax rate     3.1       (7.5 )     9.9  
Non-deductible expenses-permanent difference     (0.2 )     (1.0 )     5.0  
Change in valuation allowance     (20.6 )     (69.5 )     (34.9 )
Effective tax rate     7.3 %     (53.0 )%     5.0 %

  

Deferred tax assets,(liabilities) net are composed of the following:

 

    March 31,
2026		     March 31,
2025		  
Deferred tax assets:            
Net operating loss carry-forwards   $ 10,314,368     $ 9,596,477  
Bad debt     541,223       619,291  
Total deferred tax assets, gross     10,855,591       10,215,768  
Valuation allowance     (10,742,345 )     (10,186,112 )
Total deferred tax assets, net   $ 113,246     $ 29,656  
Deferred tax liabilities:                
Intangible assets from acquisition     469,599       521,777  
Total deferred tax liabilities   $ 469,599     $ 521,777  
                 
Deferred tax assets(liabilities), net   $ (356,353 )   $ (492,121 )

  

The Company has recorded $0 unrecognized benefit as of March 31, 2026. On the information currently available, the Company does not anticipate a significant increase or decrease to its unrecognized benefit within the next 12 months.