Query is in blue color below. The rest explains the scenario.

April 02, 2006 - Moved from India to Baton Rouge, Louisiana -US ( L1 visa ) with the assignment expected to last for less than 1 year. Before leaving India, stored my belongings in a storage. I claimed unreimbursed employee expenses ( Travel & meal ) in year 2006 return.

March 20, 2007 - Assignment expected length changed to 18 months i.e. till Sept 2007. I understand that from March 20, 2007, my tax home will be Baton Rouge, Louisiana & I can no longer claim unreimbursed employee expenses ( Travel & meal ). I also understand that I can claim unreimbursed employee expenses ( Travel & meal ) till March 19, 2007. Please confirm. If yes, can I use the standard per diem rate for claiming unreimbursed employee expenses. What is that rate for Baton Rouge, Louisiana?

Oct 03, 2007 :- Transferred back to India, permanently. Inlieu of claiming expenses of moving households goods from US to India , can I claim my expenditure of storing belongings in India from Jan 2007 to Oct 03, 2007. Storage expenses in India are less than moving all belongings from US to India. Please reply.

You moved in 2006. You can't deduct any expenses in 2007. You can't deduct moving expenses back to India.

Read: Your U.S. Tax Return: Moving Expenses (http://taxipay.blogspot.com/2008/02/moving-expenses.html)

There is a catch over here. From March 20, 2007, my tax home is Baton Rouge, Louisiana. Now when I am moving to India in Oct 2007 on a permanent basis, my tax home changes from US to India. Per this understanding, I should be able to claim moving expenses from US to India. Please advise.

Moving expenses means moving to start a new job.
Also if the new workplace is outside the U.S. you must be U.S. citizen or resident alien to deduct your expenses.

I believe that I am a resident alien as I meet substantial presence test. Moreover, I have been transferred from US to India.

What is the definition of new job? Is it new employer? I am not able to find any documentation on IRS site which says that moving expenses outside US can be claimed only in case of new employer.

Please advise.

You should read IRS Publication 521: Moving Expenses
Internal Revenue Service (http://www.irs.gov)