dependencies {
classpath 'com.android.tools.build:gradle:1.3.0'
// NOTE: Do not place your application dependencies here; they belong
// in the individual module build.gradle files
}
File->Project Structure->Project pane->"Android plugin version".
Make sure you don't confuse the Gradle version with the Android plugin version. The former is the build system itself, the latter is the plugin to the build system that knows how to build Android projects
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But when using the gradle plugin 0.7.+, Android Studio needs Gradle 1.8. So, you have to update Gradle from 1.7 to 1.8. This was done by going to Tools -> Android -> Sync Project with Gradle Files It forces Android Studio to give out Error message you see on http://tools.android.com/recent
Open up this file in your project:
<project>/gradle/wrapper/gradle-wrapper.properties
Edit the distributionUrl line and set it too:
distributionUrl=http://services.gradle.org/distributions/gradle-1.8-all.zip
Rebuild your project.
</project>
Look in the SDK Manager what is your highest Android SDK Build-tools version, and copy this version number in your project build.gradle file, in the android/buildToolsVersion property (for me, version was "18.1.1").