The faceoff took place near Pangong lake area of Ladakh.
As per reports, a brigadier level flag meeting was called later in the evening to sort out the dispute.
This was almost the same region where Indian and Chinese soldiers had a violent scuffle in the year 2017.
The first face-off in about a year comes amid the decline in trust levels between the two countries after India removed Article 370 in Jammu and Kashmir.
As per reports, while the Indian Army was patrolling along the northern bank of the disputed Pangong lake when the Chinese troops objected to their presence.
The present face-off has taken place a month ahead of Prime Minister Narendra Modi and Chinese President Xi Jinping’s scheduled informal summit on October 10-12 near Chennai.
In 2018, the two countries had face-off in Burtse in northern Ladakh, after a temporary hut was built by the Chinese troops.
Instances of transgression has come down in recent years, Defence Ministry has said.