Service tax on transportation

I am running a sole proprietorship firm having turnover of below 1.50 Crore.  Till date, Transporter Charge Service Tax on freight & I pay the same as per their Bill/G.R.

I am not registered under service tax.   Our yearly freight charges would be around Rs.3 to 4 lacs.

My question is 

1.  Is I am required to get service tax registration. (My yearly frieght is appx. 3 to 4 lacs only)

2. Is exemption limit is not applicable to me (10 Lacs).

3. Who is liable to deposit service tax ( Me or transporter).

4. Can I continue the previous practice.

Please advice.

If you are falling in any of the following catergories than you are liable to pay service tax.

Threshhold limit of Rs.10 lacs is not applicable

Regards

Dayananda