Staff salary expense of professional service provider

Hi,

I provide professional services in the field of Software design from which I earn approx 1 Lac per month and I have employed staff whom I pay INR 20000 pm.
I understand that I can show this as an expense in ITR-4. My question - is it mandatory to deduct TDS and issue form-16? If yes, what do formalities are required?
Currently, I have PAN and Service tax number only.

Thanks,
Saurabh Jain