Pakistan has allegedly violated its truce with India for the third time in the last 24 hours.
Mortar shells have been fired into Indian territory by Pakistan and damaged the Trade Felicitation Centre in Poonch, Kashmir, it has been reported.
Indian authorities responded by suspending trade between Poonch and Rawalkote, a disputed region between India and Pakistan.
Schools near the area have been closed as a “precautionary measure” and examinations that were due to take place have been delayed.
"The Pakistani Army fired unprovoked in Poonch sector from 0640 hours on Monday," Jammu defence spokesperson Lt Col Manish Mehta told the Times of India.
"Pakistani troops using 82 mm mortars, automatic weapons targeted our forward defended locations along Line of Control (LoC) and the fire was responded by our troops in a befitting manner, ensuing a heavy exchange of fire."
"Intermediate firing is going on. No casualty has been reported so far," he added.
Union minister Rajyavardhan Singh Rathore condemned Pakistan for the violation of the ceasefire.
"It is an old habit of Pakistan. It always resorts to unprovoked firing along the LoC whenever there is a festival," he said.