New Delhi, Sept. 1: Union finance minister P. Chidambaram is open to discussions on the clarifications given by the revenue department regarding the fringe benefit tax (FBT). He is also ready to smooth out any errors that may have cropped up.

He is willing to sit with industry chambers like Ficci and the CII to discuss the FBT clarifications issued on Monday.

“They have been drafted carefully, I have myself spent several hours over them. I am willing to sit with you and discuss the issues involved ... if any error has cropped in inadvertently, we will look into it,” Chidambaram said at a meeting with automakers.

Industry chambers have been unhappy with many of the clarifications given in the FBT circular. They are particularly displeased with taxes on client entertainment spending, arguing that “clients are hardly employees whose perks need to be taxed”.

Their contention is that client entertainment is vital business expenditure. Similarly, industry associations are unhappy about taxes on certain employee benefits, which cannot be passed on to the staff.

Chidambaram's offer of a round table meeting is the second such offer. Earlier, when the FBT was articulated in the budget, industry associations had attacked it strongly, forcing the finance minister to make a similar offer to smooth ruffled feathers.

Chidambaram also said VAT was likely to turn into a nation-wide phenomenon soon as most states, which have till now shied away from implementing the new tax regime, are likely to join in. “We are ready to help them with all backup facilities whenever they do,” he added.

The finance minister had spoken to all chief ministers on the issue except “one who I have not even managed to meet as yet”.

Chidambaram has been trying to meet Uttar Pradesh strongman Mulayam Singh Yadav, but without much success.