The Pakistani troops' firing started in the Battal area in Poonch sector at 1630 hours after which Indian troops gave a measured response. The firing ceased at 1810 hours, army headquarters said in New Delhi.
The firing took place in the area guarded by the 13 Rajputana Rifles, whose two soldiers Lance Naiks Sudhakar Singh and Hemraj were killed and their bodies were mutilated by Pakistani troops, it said.
The unit deployed in the area is known as the Barasingha battalion.
In Islamabad, Pakistan army claimed in a statement that Indian troops had started firing in which one of its soldiers was killed.
The army in New Delhi rejected the allegation of starting the firing.
India also dismissed Pakistan's allegations that its army transgressed the Line of Control (LoC) in Uri sector on Sunday.
In fact, Pakistan had carried out a ceasefire violation on the night of January 5-6 and "controlled retaliation" was carried out by the Indian Army on January 6, an army press release said on Thursday.
"No LoC transgression has been resorted to by the Indian Army in Uri Sector on January 6 as alleged," it said.