Tottenham defender Caulker was initially banned for two matches and Ince picked up a one match suspension for behaviour at the end of the side's 1-0 play-off victory over Serbia on 16 October that saw Stuart Pearce's team qualify for this summer's European Championship.
Caulker was issued with a warning by Europe's football governing body in respect of his future conduct and was ordered to undertake one full day of community football service.
It was disappointment though for Blackpool winger Ince who will have to miss England's opener at the tournament in Israel.
Pearce, who attended the hearing in Switzerland with the two players, said: "We respect UEFA's decision and we will now move on and focus on the tournament in the summer.
"We welcome the ruling to overturn Steven Caulker's suspension and choose to accept the verdict with regards to Tom Ince. Both players should be proud of the way they represented themselves at UEFA."
Racist chants from Serbian fans towards England players also overshadowed the encounter in Krusevac and the hosts were initially ordered by UEFA's disciplinary panel to play their next competitive U21 game behind closed doors, as well as receiving a £65,000 fine.
However, after the appeal at UEFA's headquarters in Nyon on Friday, Serbia were told they would have to play their next two competitive games behind closed doors, while their fine was not changed.
The FA had appealed on behalf of the pair but UEFA planned a counter-appeal requesting for punishments handed out to England and Serbia be increased.
As a result, Serbia fitness coach Andreja Milutinovic had his worldwide ban increased from one to two years, while player Nikola Ninkovic's two-match suspension was increased to three.
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