Forgot to mention this earlier.
I have a TC35 module which already has a level converter on it( MAX232E ).
This is the exact module that i bought:
http://www.ebay.com/itm/GSM-SIEMENS-TC35-SMS-Wireless-Module-UART-232-TC35I-MC35I-ge-/281035188132?pt=LH_DefaultDomain_0&hash=item416f00a7a4