The Pakistan army used automatics and light weapons and the Indian side retaliated the fire.
Till last reports came in, firing exchange between the two sides was still going on.
On Friday, India's External Affairs Minister Salman Khurshid and Pakistan's adviser on foreign affairs and national security, Sartaj Aziz, agreed to a meeting of the prime ministers of the two countries in New York later this month.
Aziz and Khurshid met in Bishkek, Kyrgyzstan, on the sidelines of the Shanghai Cooperation Organisation summit. The two leaders had agreed to respect the LoC ceasefire agreement.
Just two days after the meet, Pakistan again violated the ceasefire.
The bilateral ceasefire agreement was signed by the two neighbours in November 2003. It had brought normalcy in the lives of thousands of people living close to the border.
India has been accusing Pakistan of unprovoked violation of the ceasefire agreement since the beginning of the year.