Is it necessary to pay consumption tax to buy coral beads processed by other jewelry factories and then process them into gold-inlaid necklaces and sell them to retail stores? Why?
You can't. Gold and silver (including platinum) jewelry, diamonds and diamond ornaments taxed in the retail sector shall not be deducted from the taxes paid for the purchase of jewelry and jade. In other words, if a gold-inlaid necklace is produced, there is no need to pay consumption tax or tax deduction. For the production of coral necklaces, a consumption tax of 10% is levied on ex-factory sales, and the tax can be deducted according to the production amount.