Hi There is a mine. It collapsed and workers got injured and claimed for compensation. Since its probable that economic benefits will outflow, we need to provide for it. Now the mine is completely shut down. So initially provision for it was created as Dr. Mine Cr. Decomissioning provision. So what I did is, used up this existing provision to the extent of injury compensations Dr. Decomissioning provision Cr. Mine injury provision This is because if i create a new provision, i thought that there can be a tax duductible instance which i need not claim it unnecessarily. Dr. Injury expense Cr. Injury provision So what U/S is a provision tax deductible or non deductible please. Tax
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