The error says: Warning: include(Apptha/Timer/Model/Resource/Eav/Mysql4/Setup.php): failed to open stream: No such file or directory in /var/www/html/lib/Varien/Autoload.php on line 94 but the file does exist in the right folder and class name.

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This line in the config <class>Apptha_Timer_Model_Resource_Eav_Mysql4_Setup</class> says that for the db schema install/upgrade, magento will use your class Apptha_Timer_Model_Resource_Eav_Mysql4_Setup to execute the install./upgrade scripts.
If you don't plan do do anything fancy during the install/upgrade for table schemas you can just remove that line from the config.
If you have custom logic in the install/upgrade scripts you need to create the class and it should extend Mage_Core_Model_Resource_Setup or any other class that extends Mage_Core_Model_Resource_Setup.
For example, if you need to add some eav attributes or attribute sets you can extend Mage_Eav_Model_Entity_Setup, or if you need to modify something related to orders you can extend Mage_Sales_Model_Entity_Setup or Mage_Sales_Model_Resource_Setup.

If you say the file exists, make sure there is no typo in the class or folder name.


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