Section 196(d) in The Navy (Pay And Allowances) Regulations, 1966
(d)In the case of hotels, clubs and the like, the Officer Commanding, Station shall determine what proportion of the charges made by the hotel, clubs and the like, should be allocated to [Licence Fee] [Substitued by S.R.O. 9-E, dated 19th March, 1974] and the decision on this point shall be based on a consideration of the accommodation occupied and the comparative cost of similar accommodation elsewhere.