A Pakistani military spokesman, Major-General Shaukat Sultan, said that no firing had taken place from its side.
"No one from Pakistan has fired and there is no ceasefire violation by Pakistan," he said in Islamabad.
"Explosions about 1500 metres across the Line of Control ... were heard on Tuesday at 7.15pm (1415 GMT)," Sultan said.
He added that 10-12 blasts were heard "but we cannot say whether it was blasting, explosions or mortar fires".
Sultan called the Indian allegations "utterly baseless".
India's military spokesman Major-General Deepak Sammanwar said on Tuesday that Indian positions in the Durga area near the town of Poonch came under fire from the Pakistani side around 6.30pm local time (1300 GMT) and continued for about 90 minutes.
"We cannot say whether it was blasting, explosions or mortar fires"
Major-General Shaukat Sultan, Pakistani military spokesman
He said that although there were no casualties in the shelling, the incident had violated the 14-month-old ceasefire. A ceasefire has been in force along the borders in Kashmir since November 2003.
The Baglihar dam issue has cast a
new shadow over Indo-Pak ties
The Indian statement came hours after Islamabad announced that it had taken a long-running dispute over a dam India is building on its side of divided Kashmir to the World Bank.
The 450MW Baglihar dam is being constructed by India on the Chenab river in the Doda district of Indian-administered Kashmir.
Pakistan says the dam is a violation of the 1960 Indus Water Treaty, which regulates water sharing, brokered by the World Bank.
Pakistan's foreign ministry spokesman Masood Khan said in Islamabad on Tuesday the decision to ask the World Bank to appoint a neutral arbitrator was reached after months of frustration.