Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 71

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE 

    December 31, 2024  
    June 30, 2024 

    Beginning balance 
    $1,110,668  
    $2,471,066 
  
    Acquisition of subsidiaries 
     -  
     154,481 
  
    Disposal of Tenet Jove 
     -  
     (2,392,580)
  
    Current year addition 
     908,525  
     881,746 
  
    Exchange difference 
     (4,719) 
     (4,045)
  
    Valuation allowance 
    $2,014,474  
    $1,110,668 
  
    Ending balance 
    $2,014,474  
    $1,110,668 

(b) Value-Added Tax

The Company is subject to a VAT for selling
goods. All of the Company’s products that were sold in the PRC were subject to a Chinese value-added tax at rates ranging from
3% to 13%, depending on the type of products sold. For overseas sales, VAT is exempted on the exported goods. The amount of VAT liability
is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with
the relevant supporting invoices (input VAT). Under commercial practice in the PRC, the Company pays VAT based on tax invoices issued.
The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the
date on which the revenue is recognized and the date on which the tax invoice is issued.

In the event that the PRC tax authorities
dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount
of the taxes which are determined to be late or deficient, and the penalty will be expensed in the period if and when a determination
is made by the tax authorities. There were no assessed penalties during the six and three months ended December 31, 2024 and 2023, respectively.

(c) Taxes Payable

Taxes payable consisted of the following:

SCHEDULE OF TAXES PAYABLE 

    December 31, 2024  
    June 30, 2024 

    Income tax payable 
    $1,314,985