INCOME TAXES

12 Months Ended

Mar. 31, 2019

Notes to Financial Statements

NOTE 10 - INCOME TAXES

The Company uses the liability method, whereby deferred taxes and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. The net deferred tax asset generated by the loss carryforward has been fully reserved. The cumulative net operating loss carry-forward is approximately $1,670,763 at March 31, 2019, and will expire in the years 2036 through 2039.

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law. The Company has completed the accounting for the effects of the Act during the year ended March 31, 2019. The Company’s financial statements for the year ended March 31, 2019 reflect certain effects of the Act which includes a reduction in the corporate tax rate from 34% to 21% as well as other changes.

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of March 31, 2019 and March 31, 2018 are as follows:

	March 31,			March 31,
	2019			2018
Net operating loss carryforward	$	1,670,763		$	1,513,590
Effective tax rate		21	%		21	%
Deferred tax asset		350,860			317,854
Less: Valuation allowance		(350,860	)		(317,854	)
Net deferred asset	$	-		$	-

The utilization of the carryforwards is dependent upon the Company’s ability to generate sufficient taxable income during the carryforward period. In addition, utilization of these carryforwards may be limited due to ownership changes as defined in the Internal Revenue Code.