Dear Friend,
IT is certainly mandatory to deduct PF and other benefits, provided all are within the criteria of laid down rules, it is not okay simply paying basic salary and travelling allowance to the employees...the employees should be treated as a part of the organisation, as regard salary slips it is proper to issue basic salary, DA, city allowance/HRA, TA particulars if necessary, CCA, Medical allowance, in some cases worked out uniform allowance, education allowance, etc., deductions like should be reflected as EPF, loan deduction etc., when you are saying a small private/partnership firm these items should be reflected....yet, it is worthy to be good rather than a mockery...
A Typical small firm..reflecting exploiting employee for the benefit of the firm ...
best of luck ....