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 the India - United States Income Tax Treaty (1989) (Tax Treaty). (a) Facts. The Taxpayer (i.e. Convergys Customer Management Group Inc.), a tax resident of...