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"Pakistan Army did not commit any ceasefire violation on LoC as alleged by India. Indian blame of mutilating Indian soldiers' bodies is also false," a statement from the Pakistan Army's Inter-Services Public Relations wing said.
"Pakistan Army is a highly professional force and will never disrespect a soldier," it said.
In a barbaric attack, an army junior commissioned officer (JCO) and a Border Security Force head constable were killed and their bodies mutilated by a Pakistan army team which sneaked about 250 metres into the Indian territory along the Line of Control (LoC) in the Poonch district of Jammu and Kashmir.
Pakistan's Border action team (BAT) crossed into the Indian side as the Pakistan Army launched heavy rocket and mortar firing on two forward posts in the Krishna Ghati sector in Poonch.
The incident evoked a sharp reaction in India with Defence Minister Arun Jaitley saying such attacks do not even take place during war and that the whole country has full faith in the armed forces.
"Bodies of soldiers being mutilated is an extreme form of barbaric act. The Indian government strongly condemns this act. The whole country has full faith in our armed forces which will react appropriately to the act," Jaitley said.