/support/notes/service/sap_logo.png){kind=logo}
SAP Knowledge Base Article - PublicSymptom
As per the Union Budget 2026 announcement, the "Supply of Manpower" is now classified as "Work" to avoid misclassification under professional services.
Environment
SAP S/4HANA Cloud Public Edition
Resolution
In S/4HANA, this requires the following adjustments:
- Definition Update: Manpower supply must now be processed under section 194C (Work Contracts) rather than section 194J.
- Rate Correction: Systems must be configured to prevent the higher 10% deduction, fixing the TDS rate at 1% (Individuals/HUF) or 2% (Others).
Keywords
Union Budget, 2026, Manpower supply, TDS, 194C, Individuals/HUF , KBA , FI-LOC-FI-IN , India , FI-LOC-FI-IN-WHT , Withholding Taxes , Problem
Product
SAP S/4HANA Cloud Public Edition all versions
/support/notes/service/facebook.svg)
/support/notes/service/twitter.svg)
/support/notes/service/youtube.svg)
/support/notes/service/linkedin.svg)
/support/notes/service/instagram2.svg)