Treaty between India and United States – Indian decision on when fixed place is "at the disposal" of the non-resident company and the manner of computing profits attributable to a PE

The Income Tax Appellate Tribunal (ITAT) in the case of Convergys Customer Management Group Inc. v. ADIT (ITA No. 1443/Del/2012 & 5243/ Del/2011) on 10 May 2013 ruled that a fixed place permanent establishment (PE) is constituted when employees of the parent non-resident company frequently visit the Indian subsidiary to provide supervision, direction and control for the business operations carried on by the Indian subsidiary. Accordingly, the profits attributable to a PE are taxable under th…