Step 1: add mod_rewrite
sudo a2enmod rewrite
this will create a loader to /etc/apache2/mods-enabled/rewrite.load
that loads the module /usr/lib/apache2/modules/mod_rewrite.so
and it be linked to : /etc/apache2/mods-available/rewrite.load

Disable rewrite use: sudo a2dismod rewrite

Step 2: Setting AllowOverride
sudo vi /etc/apache2/apache2.conf

AllowOverride all

Or VirtualHost:
sudo vi /etc/apache2/sites-enabled/*

ServerName kit.dev.hooto.com
DocumentRoot /sdata/Projects/SmartKit/trunk/

AllowOverride all

sudo /etc/init.d/apache2 reload

Step 3: Create .htaccess file in your site's root directory
E.g. a simple rewrite rules

RewriteEngine on
RewriteRule !\.(js|ico|gif|jpg|png|css)$ index.php

END.