One of the term has been used:
"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  

It could be a security NON REFUNDABLE yet not INCOME. Like Security towards cost of Modem, Phones etc. which is used as and when the user goes away taking both and does not continue with the connection. So there is no INCOME from the user. So the amount spent by MTNL on equipments given to users is off set by transferring then from the NON REFUNDABLE SECURITY ACCOUNT. This may be wrong, but this is my understanding. more  
It is one type of corruption by collecting money from consumers. Govt
should check it immediately. more  
Good submissions. However, the point is not service tax to the government. The 'non refundable deposit' was a creation of the head clerk in the telephone department to bolster the head of tr (telecom revenue). It was, an is, anti consumer. A deposit which is non refundable. The creator of this term and the approved, should be sent, to jail, Kejriwal style.
Nobody cares for the consumer, even he or she does not know his rights. Thus we say government revenue is taking a hit. Actually, the revenue can go to hell, there is much cheating by the head clerk every moment in your life. Non refund of tds is one such case.
My request to this August group is to please see the consumer angle, and stop seeing things from the eyes of the head clerk. Many, and perhaps most, things will fall in place.
Cheers and have a good day. more  
Sir you have caught the right nerve of MTNL. more  
there are so many things are like this..if the concern people should work..for eg..why there is so much traffic jab,why there is so much theft-eventhough the people been given sophisticated vehicles,why there is so many defaulter IT, why there are so many business people are escape from IT,why so much electricity theft,why public money been cheated by financial co,in railway stations,in trains,in bus-why ladies not only ladies, man been haressed-how the people get reservation seat in the running train,how the medical shop selling medicine without bill and not paying IT,howmany hotels in india is serving the food to the standard means,even though money been paid for water is it of good quality-in train,in bus stand,in many place,when the house owner are getting rent from the people,whether they are paying the tax to IT,what is the control,the education been soldout openly in the market,doctors are taking huge amount as consultation charges-is there any control,for died persons in many private hospitals treatment been given for many days,many a people who is doing money transaction in many cases,but only tax payers only been traced,what about the remaining people,for eg even beggers are earning in lakhs per money etc---this is an few things what i have mentioned here---who has to control--who has to look into the matter--who is going to give solution for these kind of problem,out of the above problems whether anyone going to take action against to this .. more  
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