WordPress – Default .htaccess is not working on Godaddy

I have created a beta version www.myhouseinthecloud.com/beta of my client site to do further development but having hard time due to rewrite. Its redirecting me root www.myhouseinthecloud.com all the time.

Here is default .htaccess I have got from WordPress:

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<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /beta/
RewriteRule ^index.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /beta/index.php [L]
</IfModule>

Site is working fine if I am using id instead of permalinks.

I have Godaddy shared hosting so cannot access apache directly. Please guide me how to resolve this issue.

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