India has termed it a "barbaric act".
"Pakistan Army did not commit any ceasefire violation on the Line of Control or a BAT action in the Buttal sector (India's Krishna Ghati sector) 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, reported news agency PTI.
"Pakistan Army is a highly professional force and shall never disrespect a soldier, even Indian," it said.
The Defence Minister Arun Jaitley, on Monday, criticised the attack by the Pakistan Army which violated ceasefire along the Line of Control (LoC) this morning in Poonch sector and mutilated the bodies of two Indian soldiers.
"The Act of killing & mutilating the bodies of two of our soldiers is the most reprehensible & barbaric. The sacrifice will not go in vain", he tweeted.
"We have fullest confidence in our Armed forces who will react appropriately", he added.
"This is a reprehensible and inhumane act, such attacks don't even take place during war, let alone peace," Defence Minister Arun Jaitley said reported news agency ANI.
STATEMENT OF ARMY
Pak army carried out unprovoked rocket and mortar firing on two forward posts on the line of control in Krishna Ghati Sector. Simultaneously a BAT action was launched on a patrol operating in between the two posts. In an unsoldierly act by the Pak Army the bodies of two of our soldiers in the patrol were mutilated. Such despicable act of Pakistan Army will be appropriately responded.
PM Narendra Modi was briefed about the situation.
Three jawans are also said to be injured in the heavy firing. An army jawan from the JCO, a BSP soldier were killed in the attack.