The problem (or at least one of them) is that the max232's output (which goes to the receive data pin on the GPS chip) will be solidly pulled to some logic level.
When you try to send data to it from the arduino, it will essentially short it out.
Another issue is that the GPS chip may be 3.3V and your arduino is almost certainly 5V. When it drives the signal high, it may damage the gps unless it has 5V tolerant inputs.
As Harald suggests, getting hold of the datasheets is probably the first thing you need to do before interfacing a pair of chips you've not interfaced before.
Yes sir, you are right. I got it. I see that on my board ,tx pin on gps is connected to pin no 11 (T1 in) on max 232 on rx to pin no 12 (r2 out) on gps and rs 232 connector is connected to pins 13 and 14.
Now, I will solder a gnd pin from the pcb board and connect it to arduino. Also, I will remove the max 232 ic on the board , but I will use the board to provide power to gps module (with ic max 232 taken out from the ic holder).
And ,also yes gps gives 3.3v output and arduino is 5v. But , I will just send data from gps to arduino and no data is going to be sent from arduino to gps.
I am just using the gps to read latitude and longitude values to the arduino. Thats it!
I think this will not be a problem? What you think?