India Is Said to Defend Digital Tax as U.S. Starts Probe

India will defend its decision to widen a tax on digital services after the U.S. started a probe to determine whether the policy discriminates against American tech giants, a person with the knowledge of the matter said.

The government isn’t considering changing its stance on including e-commerce within the scope of its levy, the person said, asking not to be identified as they’re not authorized to talk with media. The broader tax was announced in Prime Minister Narendra Modi’s latest budget in February and has already come into effect.

India is among ten nations facing a probe on digital ...