Im working on simple map app, I added google-play-services.jar and its reference to gradle
dependencies {
compile files(\'libs/android-support-v4.jar\',
Add this line in the dependencies section of your build.gradle file:
compile 'com.google.android.gms:play-services:3.2.+'
You don't need to add a .jar to your libs folder.
Edit
As Varun pointed out, you also need to update the SDK to contain the most recent version of the play services.
You can do this by opening up the Android SDK Manager (under the Window tab) from Eclipse+ADT, checking the box next to Google Play services in the Extras folder, and clicking install.