False positive
Yes, you can use source code - those are false positive, as AVG detects that binaries (compiled from source code) are accessing SMS and location services, so AVG assumes (without actually knowing what is purpose of these binaries) that someone wants to spy on your location and SMS.
If you are so concerned you can safely delete those DEX (compiled binaries) and when you compile android source files you will get them again. In this special case it's might be even good idea to turn off AVG for folder where you develop Android applications to prevent it's interference, although I had no problems like that so far and I developed dozen of Android apps and I have AVG as well.
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