Pakistan has said Indian troops raided a military post in the Haji Pir sector of Pakistan-occupied Kashmir, killing a soldier and injuring another.
The Indian Army however was reported as saying that it had responded to a "ceasefire violation" but did not cross the Line of Control.
The Indian firing was a retaliation to shelling from Pakistan´s side that destroyed a home on this side of the border, the army reportedly said.
Pakistan meanwhile said Indian troops had "physically raided a checkpost named Sawan Patra", killing one of its soldiers and severely injuring another.
Skirmishes in Kashmir are not uncommon between the two nuclear-armed neighbours who have fought three wars over the disputed territory since gaining independence.