Section 20(2) in The Bihar Value Added Tax Act, 2005
(2)When-(a)any registered dealer discontinues or entirely transfers his business to other persons; or(b)the liability of a registered dealer to pay tax under this Act has ceased,the dealer shall, forthwith, surrender his certificate of registration in the manner prescribed to the prescribed authority and the said authority shall cancel the certificate of registration in the manner prescribed:Provided that, in a case covered by clause (a), the certificate of registration shall be deemed to be inoperative with effect from the date of discontinuance or transfer of the business and, in a case covered by clause (b), with effect from the date on which the dealer's liability to pay tax has ceased.
