I have un commented it. When I consult my host they said mod_rewrite_mod is enabled.
I think that thats why wordpess htacess works fine in root folder
I am pasting entire htacess file content here
# BEGIN PunBB
# ----------------------------------------------------------------------
# Start rewrite engine
# ----------------------------------------------------------------------
<IfModule mod_rewrite.c>
# MultiViews interfers with proper rewriting
Options -MultiViews
RewriteEngine On
# Uncomment and properly set the RewriteBase if the rewrite rules are not working properly
RewriteBase /
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . rewrite.php [L]
</IfModule>
# ----------------------------------------------------------------------
# Better website experience for IE users
# ----------------------------------------------------------------------
# Force the latest IE version, in various cases when it may fall back to IE7 mode
# github.com/rails/rails/commit/123eb25#commitcomment-118920
# Use ChromeFrame if it's installed for a better experience for the poor IE folk
<IfModule mod_setenvif.c>
<IfModule mod_headers.c>
BrowserMatch MSIE ie
Header set X-UA-Compatible "IE=Edge,chrome=1" env=ie
</IfModule>
</IfModule>
<IfModule mod_headers.c>
# Because X-UA-Compatible isn't sent to non-IE (to save header bytes),
# We need to inform proxies that content changes based on UA
Header append Vary User-Agent
# Cache control is set only if mod_headers is enabled, so that's unncessary to declare
</IfModule>
# ----------------------------------------------------------------------
# UTF-8 encoding
# ----------------------------------------------------------------------
# Use UTF-8 encoding for anything served text/plain or text/html
AddDefaultCharset utf-8
# Force UTF-8 for a number of file formats
AddCharset utf-8 .html .css .js .xml .json .rss
# ----------------------------------------------------------------------
# A little more security
# ----------------------------------------------------------------------
# Do we want to advertise the exact version number of Apache we're running?
# Probably not.
## This can only be enabled if used in httpd.conf - It will not work in .htaccess
# ServerTokens Prod
# "-Indexes" will have Apache block users from browsing folders without a default document
# Usually you should leave this activated, because you shouldn't allow everybody to surf through
# every folder on your server (which includes rather private places like CMS system folders).
<IfModule mod_autoindex.c>
Options -Indexes
</IfModule>
# END PunBB