INCOME TAXES

9 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 11 – INCOME TAXES

The Company has total income tax of $1,670,169 and $2,674,778 for the three months and nine month ended March 31, 2013, respectively. The Company continues to conduct most of its business through its major PRC subsidiaries whose applicable income tax rates are 15% or 25% for the three and nine month ended March 31, 2013.

The Company’s effective tax rates were 30% and 31% for the three months ended March 31, 2013 and 2012, respectively and 20% and 2% for the nine month ended March 31, 2013 and 2012. The changes in effective tax rate for the nine months ended March 31, 2013 and 2012 was mainly resulted from changes in applicable income tax rate of one subsidiary from 15% to 25% when the tax holiday expired in December 2011, besides, the effective tax rates were also affected by the tax refund which was recognized when obtained.