Devoid of physical barriers, transactions over the internet have posed significant challenges to the determination of jurisdiction where the primary concern till date, is the lack of a definite procedure of asserting jurisdiction. The jurisprudence has evolved over the years, with international instruments such as the Convention of Cyber Crime seeking international cooperation to resolve jurisdictional issues. The question really narrows down to the extra-territorial application of domestic laws by municipal courts and if such application is justifiable. Hence ensues, the larger debate of the rift between the principle of sovereignty of States and the national principle. Acknowledging that internet is today an essential part of the daily lives of individuals, this fundamental question of assertion of jurisdiction assumes great significance. This paper endeavours to examine how Courts over the world have attempted to exert jurisdiction in the domain of the internet with the aid of multiple tests like the sliding scale test and the effects test. With an extensive study of the jurisdiction available, this paper analyses the impact of the tests so devised and how jurisdiction has continued to be a recurring issue.