As per TDS194R, below is the required summary on which TDS needs to be deducted on COGS if value or aggregate value of free goods sold exceeds Rs. 20,000. There should be a provison or functionality within system to auto calculate TDS on COGS, if condition meets. Below is the requirement for TDS under section 194R

The tax shall be deducted under this provision if the value or aggregate of the value of the benefit or perquisite provided or likely to be provided during the financial year exceeds Rs. 20,000. In such a situation, the tax will be deducted on the entire value of benefit or perquisite and not merely the excess of Rs. 20,000.

The CBDT has clarified that since the threshold of Rs. 20,000 is with respect to the financial year, calculation of value or aggregate value of the benefit or perquisite triggering deduction of tax under this provision shall be counted from 1st April of the financial year. Hence, if the value or aggregate value of the benefit or perquisite provided or likely to be provided to a resident exceeds Rs. 20,000 during the financial year 2022-23 (including the period up to 30th June 2022), the tax shall be required to be deducted in respect of any benefit or perquisite provided on or after 01-07-2022.