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of <h1>India Cuts Service Tax Interest Rate from 18% to 15% u/s 73B of Finance Act, 1994.</h1> The Government of India, through the Ministry of Finance, has issued Notification No. 14/2016-Service Tax, amending the previous notification No. 8/2006-Service Tax. This amendment, effective upon the President's assent to the Finance Bill, 2016, reduces the prescribed interest rate under section 73B of the Finance Act, 1994, from eighteen percent to fifteen percent. The notification is an exercise of powers conferred by the Finance Act to adjust the interest rate applicable to service tax matters.
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