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US probe into India's digital tax not a move of aggression, says official

The Indian government has so far not commented officially on the USTR investigation

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From April 1, India imposed a new 2 per cent tax on foreign billings, or transactions where companies take payment abroad for digital services provided in India

Reuters New Delhi
The US government's move to launch a trade investigation into a digital services tax adopted by several countries including India should not be construed as a move of aggression against New Delhi, a senior Indian government source said on Wednesday.

The US Trade Representative's Office is investigating digital services taxes being adopted or considered by India and other countries such as Italy and Brazil, it said on Tuesday, a move that could lead to new punitive tariffs and heighten trade tensions.

"A number of US allies such as the EU and the UK are mentioned in this list ... this