"One time non-refundable security"
Normally the amount of security always is refundable subject to certain fullfilment of terms and conditions. Surprisingly MTNL has used it. Now the question arise as to why it has been used.
In my view the word security might have been used is to mislead the tax department. If the charges taken from the subscribers are shown as service charges then it will attract service tax. The security amount does not attract taxes.
MTNL being PSU trying to evade taxes is really a cause of concern for the taxation department. Delhi Govt. need to look into the issue from legal point of view and possibility of recovery of the evaded taxes. more